Analysis of an E-business

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Table Of Contents

EXECUTIVE SUMMARY ABOUT COMPANY 1

MARKETING & WEB PRESENCE 6

SWOT ANALYSIS 14

TECHNOLOGY 18

INTERNATIONAL, LEGAL, & ETHICAL ISSUES 25

CONCLUSION 31

EXECUTIVE SUMMARY

This project investigates the web based business of a well known Canadian based retailer, Futureshop.com. The main objective of the Futureshop e-commerce website is to be at an international level of business and to enhance its marketing capabilities. Our team analyzed the website of Futureshop. This company's presence on the web was established in 1995 and represents a reflection of all goods and services delivered by Futureshop to its customers. Futureshop. By the end of the project we have given our conclusions and recommendations concerning modifications to be introduced in order to improve the e-commerce of Futureshop.

In order to achieve our objective the consulting team first looked at the company background and analyzed Futureshop's current value chain activities and the revenue model being used. An examination of the various methods they use in order to market and promote their website was conducted. This was achieved by looking into aspects of market segmentation, web presence, and specific advertising used at Futureshop's webpage. Our team also studied the legal, ethical and cultural issues pertaining to Futureshop. Now for each of these sections of analysis we performed a SWOT analysis in order to characterize our most important findings. By using our SWOT analysis we were able to propose recommendations which are suggested to improve the business.

Background:

Established in 1982, Futureshop had become today Canada's largest electronics retailer. During these 20 years, Future Shop has grown from a "one store operation" located in Burnaby, British Columbia, to Canada's largest, fastest-growing national retailer of consumer electronic products for the digital age with more than 100 stores from coast to coast and still growing. (Their annual sales in year 2001 had surpassed 2 $ billion) Future Shop stores are now a division of Burnaby-based Best Buy Canada Ltd., which is a wholly-owned subsidiary of Best Buy Co.

Value chain:

The value chain analysis is a way of organizing and describing the primary and the support activities that the business does provide.

The business vale chain of Futureshop is engaged in the following primary activities:

Identify customers:

Futureshop launches marketing campaigns and distribute flyers to attract new customers. They also provide free newsletters online which is easy and cheap compared to other means. To better serve existing customers Futureshop regularly carries customer satisfaction surveys and questionnaires. In addition to that, Futureshop provides a toll free number for customers' assistance and support.

Design:

As a reselling business, Futureshop does not carry any activity related to this issue.

Purchase materials and supplies:

Futureshop buys their products that they sell from various electronic equipment vendors. Their products cover almost all categories of electronic equipment ranging from computers, televisions, printers, phones and much more. Their suppliers are all well-known companies in this field of industry. Concerning the quality monitoring, the site does not mention it explicitly. Upon talking to Mr. Carl Fortin mid class manager it was revealed that Futureshop keeps records of the after sale status of their sold products. From such records, Futureshop monitors the quality of the products and takes the appropriate decision upon future orders.

Manufacture product or create service:

Futureshop has contracts and relations with product manufacturers and therefore none of the operations in processing the product before sale is done by Futureshop itself.

Market and sell:

Futureshop provide many discounts to encourage and increase their sales. They advertise and promote for their products on their website. They have...
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