Ch3 (#1) - Discussion BoardCase 3.1 LAND’S END (p.86)Case 3.1 E-Tailing Business Models (p.86)Lands’ EndLands’ End (cont.)Slide 6Question - Lands’ EndReal-World Case: Wal-Mart Goes Online (p.126)Slide 9End of Real-World CaseCase 3.3 Banking and Personal Finance Online (p.100)Banking and Personal Finance Online (cont.)Question - Banking and Personal Finance OnlineCase 3.4 Online Security Bank of America (p.102)Online Security Bank of America (cont.)Online Security Bank of America (cont.)Question - Online Security Bank of AmericaSlide 18Case 3.5 Example: Safeway (p.107)Safeway (cont.)Slide 211Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceCh3 (#1) - Discussion Board•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.)•Answer:Amazon.com has several success factors including their brand recognition and well-developed logistics capabilities. •Student answers will vary on the firm's expansion into other goods. Students may argue that the firm is able to expand on its brand recognition and logistic capabilities by providing a wider sort of goods. Students may also argue that the sales of a large variety of goods dilute the firm's position in its traditional markets.2Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceCase 3.1 LAND’S END (p.86)3Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceCase 3.1 E-Tailing Business Models (p.86)•Lands’ End: How a mail-order company moved online–Successful because of the logistics system already in place–A subsidiary of Sears, Roebuck and Company –Internet sales in 2000—10% of the company’s $1.3 billion total–Projected Internet sales are 20 percent in 20034Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceLands’ End•In 1995 it offered only 100 products online; as of 2002, all of its products are online •Global presence in Japan, Germany, and the United Kingdom•Orders generated online are shipped from these distribution outlets—U.S. customers usually receive their orders in 2 days5Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceLands’ End (cont.)•Women customers can build and store a three-dimensional model of their body (Personal Model) that recommends outfits that flatter certain body profiles and suggests sizes based upon the customer’s measurements•Male customers can use a feature called “Oxford Express” to sort through hundreds of fabrics, styles, collar and cuff options, and sizes within minutes6Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceLands’ End (cont.)•Personal shopping accounts are available •Customers can track their order status online and request catalogs using the Internet•An affiliate program pays a 5% commission for every sale that comes from a referral •Maintains a B2B “store” at landsend.com/corpsales, where companies can customize clothing such as polo shirts with their logo for use as company uniforms, incentives, or gifts7Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceQuestion - Lands’ End 1. Discuss the advantage of Lands' End over other online stores like Gap. This firm has a distinct advantage because it can leverage its existing logistics system for its e-commerce effort. Other retailers may not have this existing capability and would have to create it for an e-commerce effort. 2.Identify the factors that are critical to the company’s success. (In business jargon, these are called critical success factors {CSF}.) The success factors include: efficient logistics system, brand recognition, customer service operations and online technologies. 3.Enter landsend.com and configure your ideal outfit. Report on your experience. Student responses will vary. Students will comment on the technical features provided inside the site, including the ability to assemble outfits based on preferences.8Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceReal-World Case: Wal-Mart Goes Online (p.126)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?Student answers will vary. 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. 2. Will Wal-Mart.com becomes the dominant e-tailer in the world, replacing Amazon.com? What factors would contribute to its 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.9Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceReal-World Case: Wal-Mart Goes Online (p.126)3. Perform a strategic analysis of walmart.com. Who are its competitors, customers, and suppliers? What is its relative strength or power in each of these relationships? What is its distinctive competence? How much of its strength is borrowed from its knowledge of physical stores? Student answers will vary. 4. 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? Student answers will vary.10Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceEnd of Real-World Case11Prentice Hall & Dr. Chen, Dr. Chen, Electronic CommerceElectronic CommerceCase 3.3 Banking and Personal Finance Online (p.100)•Dangers of online trading–almost 55% of stock trading in Korea is done online –fraudulent online stock trading - August 2002A criminal used a PC in an Internet cafe to place a buy order at