Chapter 3Retailing in Electronic Commerce Class Exercises Jason Chou-Hong Chen, Ph.D. Professor of MIS Graduate School of Business, Gonzaga University Spokane, WA 99223 USA email@example.com
EC Application Case 3.1: Lands’ Littlewoods Shop Direct Group: From Mail-Order Catalogue to High Street to the Web(p.101) 1. Discuss In rolling back from department store outlets and relying on catalogue and online shopping, Littlewoods is adopting a different strategy from other leading direct mail companies, such as Land’s End. Discuss the advantages and disadvantages of Littlewood’s approach. • Focus on the advantages of the company’s online focus compared to the disadvantage of limiting its distribution options. 2. If Littlewoods is to remain a successful catalogue and online retailer, what factors do you believe will be essential to its success? What will Littlewoods have to do to survive and prosper in this competitive market space? • Focus on the factors of ease of use, combination with the print catalog, distribution and richness of the online experience.
Application Case 3.1: Lands’ Littlewoods Shop Direct Group: From Mail-Order Catalogue to High Street to the Web(p.101) 3. Use the Littlewoods site to select a gift purchase and some garments for yourself. Try the same thing with other online retailers. Compare the experience. • Students will comment on the technical features provided inside the site, including the ability to assemble outfits based on preferences.
Application Case 3.4: Online Security at a Bank (p.123) 1. Why is security so important for a bank? • Security is important for a bank because they are dealing with large sums of money and personal customer information. 2. Why is there a need for two firewalls? • The two firewalls provide redundancy of security. One firewall protects the security of the user, and the other firewall protects the security of the bank's application server.
Application Case 3.4: Online Security at a Bank (p.123) 3. Who is protected by the bank's security system–the customer, the bank, or both? Elaborate. • Both parties are protected by the security system. The system protects the customer by ensuring that their personal information and accounts cannot be easily tampered with. The system protects the bank by protecting the integrity of its transactions and the security of its information. 4. What might be the limitations of such a system? • If passwords and account numbers are compromised, the system can still be compromised.
Discussion Board Questions • **4. What are the success factors of Amazon.com? Is its decision not to limit its sales to books, music, and movies, but to offer a much broader selection of items, a good direct marketing strategy? With the broader selection, do you think the company will dilute its brand or extend the value proposition to its customers? (Read Bayers 2002; available online at business2.com.) • Amazon.com has several success factors including their brand recognition and well-developed logistics capabilities. • We may argue that the firm is able to expand on its brand recognition and logistic capabilities by providing a wider sort of goods. We may also argue that the sales of a large variety of goods dilute the firm's position in its traditional markets.
*6. Will direct marketing of automobiles be a successful strategy? How should the dealers’ inventory and the automakers’ inventory and manufacturing scheduling be coordinated to meet a specific order with a quick due date? • Dealers’ and manufacturers’ inventory and scheduling should be tightly integrated to ensure that products are delivered just in time. This integration would be possible using the EC systems.
8. Discuss the benefits of build-to-order to buyers and sellers. Are there any disadvantages? • Build-to-order provides the customer with the advantage of being able to select the exact good that they desire. Merchants are able to meet their customers’ exact needs and may not need to carry any inventory. • The possible disadvantages would include: increased time to delivery due to manufacturing time, possible necessity to carry a wide variety of components for manufacture, and possible higher prices for customized goods.
Internet Exercise #14. Enter dice.com and see how it can assist technically oriented job seekers and employers. Compare the services offered with those at monster.com. • Dice provides a more specific service over that provided at monster.com. By focusing on IT, it can narrow the field of candidates and provide more specific search criteria and fields.
Real-World Case: Wal-Mart Powers Online(p.150) 1. Compare walmart.com with amazon.com. What features do the sites have in common? Which are unique to Wal-Mart.com? To Amazon.com? • Both stores have a wide variety of products available and span several different categories. Both sites have a variety of customer service and shopping features.
Real-World Case: Wal-Mart Powers Online(p.150 –cont.) 2. Will Wal-Mart.com become the dominant e-tailer in the world, replacing Amazon.com, or will Amazon.com dominate Wal-Mart online? What factors would contribute to Wal-Mart’s success in the online marketplace? What factors would detract from its ability to dominate online sales the way it has been able to dominate physical retail sales in many markets? • The dominant factor that will help Wal-Mart is their ability to purchase in bulk and their understanding of purchase-side logistics. • Amazon.com has the benefit of understanding online sales and order fulfillment online.
Real-World Case: Wal-Mart Powers Online(p.150 –cont.) 3. Check the shopping aids offered at walmart.com. Compare them with those at Amazon.com. • Both sites provide a variety of robust aids. 4. What online services can be purchased at walmart.com? • Examples include: B2C sales, photos, gift cards and other services. 5. Compare buying a song from walmart.com versus buying it from Apple’s iTunes. • OPEN
Real-World Case: Wal-Mart Powers Online(p.150 –cont.) 6. Walmart.com sells movies online for a monthly fee. How do similar sellers compare? • This model is quite similar to netflix.com and blockbuster.com. 7. Visit walmart.com, target.com, marksandspencer.com, and sears.com. Identify the common features of their online marketing and at least one unique feature evident at each site. Do these sites have to distinguish themselves primarily in terms of price, product selection, or Web site features? • OPEN 8. Investigate the options for international customers on the Wal-Mart Web site. • OPEN