Clickfrenzy

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Case Study Report——Click Frenzy

Table of content

Executive summary2
Introduction3
The retailers and their motivations4
Customer motivations5
E-business models6
The failure of Click Frenzy and reaction7
The implications of social media8
The survivors from Click Frenzy9
Conclusion and recommendation10
References12

Executive summary

With the arrival of online e-commerce, an increasing number of retailers and customers tend to shift their attention from traditional stores to online stores since the world has been globalized. This report analyzes the Click Frenzy event which is motivated by both retailers and customers. In order to conduct new ways of selling, Click Frenzy possibly needs to incorporate multiple e-business models for online stores. It can be seen that most retailers and customers felt disappointed for Click Frenzy promotion, while a majority of retailers are survived from the mess that their sales increased over 2.5 times greater than their one-month sales. Social media plays an important role on the Click Frenzy night which leads to a huge storm on the Facebook, Twitter, as well as mainstream TV headlining with the harsh #clickfrenzyfail hashtag. Although Click Frenzy was a success and a failure at different levels, the crash resulted from the large volume of buyers traffic was a sign of potential future success for these one-off sales events in Australia. It is recommended that Click Frenzy should put more emphasis on planning and testing for managing content, delivery, payment gateways, providing right information of price promotion and hiring enough IT experts to support their operation.

Introduction

Click Frenzy, which releases entitled "The Sale That Stops a Nation" to persuade customers to shop online, was an originality of Australian national online sales (Click Frenzy, 2012). The event is powered by PowerRetail and designed by Rysen, with hosting services provided by UltraServe (Click Frenzy, 2012; Arnott 2012, para. 8). The business initiative was derived from a similar US event--Cyber Monday which was first launched on November 28, 2005 for the Monday after Black Friday following Thanksgiving Day (Wells 2012, para. 3). The Click Frenzy event made itself debut on the third Tuesday, 20 November 2012 within e-commerce community, heavy social media and online promotion. The aim of the Click Frenzy is driving serious online discounts and promotions on this biggest online shopping day to increase the retailers' sales substantially until Christmas.

In this report, both retailers' motivations and customers' motivations will be analyzed in order to reflect the increasing trends for online shopping. E-business model is important for the online retailers. Click Frenzy can be seen as an online shopping mall which is not be possible with traditional business models. After that, two serious problems which include technical issues and false price promotion are clearly indicated from the Click Frenzy event. However, not all the participating retailers are losers in this mega-sales promotion, some retailers are happy to see the increasing growth on the Click Frenzy night. The essay also shows that Click Frenzy became a social media talking point before and after the Tuesday night.

The retailers and their motivations

Organizers’ had arranged sales partnerships with a large amount of Australian national and international leading retailers and brands, including Myer, Dick Smith, EZY DVD, Toys R Us, BONDS, Coop bookshop, as well as Priceline (Click Frenzy, 2012). Under the Click Frenzy all customers expected to snap up some Aussie fantastic bargains. According to the Click Frenzy's webiste (Click Frenzy, 2012), the types of products from these participating online retailers are widely and abundantly, involving products on clothing, books, toys, furniture, electronic products, cosmetics, jewelry, wine, sports and more.

E-retailers are motivated to use the Internet for...
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