Cpet581 Lecture-2012-4-9-Ch9-Retailers

Only available on StudyMode
  • Download(s) : 95
  • Published : December 18, 2012
Open Document
Text Preview
CPET 581 E-Commerce & Business Technologies
Online Retail and Services

References:  Chapter 9 Online Retail and Services, 8th edition, 2012, by K. C. Laudon and C. G. Traver, publisher Pearson Education Inc.,

Paul I-Hai Lin, Professor http://www.etcs.ipfw.edu/~lin
A Specialty Course for M.S. in Technology IT/Advanced Computer Applications Program Purdue University Fort Wayne Campus

4/10/2012

1

Topics


   

The Retail Industry Sector and Major Trend in Online Retails E-Commerce Retail: the Vision E-Tailing Business Models Multi-Channel Integration Analyzing the Viability of Online Firms • Strategic Analysis Factors • Financial Analysis Factors

 

4/10/2012

Common Themes in Online Retailing Case Study: E-Commerce in Action Amazon.com

2

1

Topics
 

The Service Sector Service Industries
• • • • • • • • Online Financial Services Online Banking and Brokerage Financial Portals and Account Aggregators Online Mortgage and Lending Services Online Insurance Services Online Real Estate Services Online Travel Services Online Career Services 3

4/10/2012

Blue Nile Sparkles for Your Cleopatra






 

Why is selling (or buying) diamonds over the Internet difficult? How has Blue Nile built its supply chain to keep costs low? How has Blue Nile reduced consumer anxiety over online diamond purchases? What are some vulnerabilities facing Blue Nile? Would you buy a $5,000 engagement ring at Blue Nile? Slide 9-4

4/10/2012

2

The Retail Sector






Most important theme in online retailing is effort to integrate online and offline operations U.S. retail market accounts for $10.7 trillion (70%) of total GDP Personal consumption: • Services: 65% • Nondurable goods: 25% • Durable goods: 10%



“Goods” vs. “services” ambiguity
5

4/10/2012

The Retail Industry


7 segments
• Durable Goods • General Merchandise • Food & Beverage • Special Stores • Gasoline and Fuel • Mail order/Telephone Order (MOTO) • Online Retail

4/10/2012

6

3

Major Trends in Online Retail, 2011–2012
   



 

Growth in social shopping Online retail still fastest growing retail channel Buying online a normal, mainstream experience Selection of goods increases, includes luxury goods Informational shopping for big-ticket items expands Specialty retail sites show most rapid growth Increased use of interactive, Web 2.0 marketing 7

4/10/2012

The Online Retail Sector Today
   



Smallest segment of retail industry (5%–6%) Growing at faster rate than offline segments Revenues have resumed growth Around 72% of Internet users bought online in 2011 Primary beneficiaries: • Established offline retailers with online presence (e.g., Staples) • First mover dot-com companies (e.g., Amazon)

4/10/2012

8

4

4/10/2012

9

4/10/2012

10

5

Multi-Channel Integration


Integrating Web operations with traditional physical store operations • Provide integrated shopping experience • Leverage value of physical store



Types of integration
• • • • Online order, in-store pickup In-store kiosk or clerk Web order, home delivery Web promotions to drive customers to stores Gift cards usable in any channel



Increasing importance of mobile devices
11

4/10/2012

4/10/2012

12

6

Analyzing the Viability of Online Firms


Economic viability: • Ability of firms to survive as profitable business firms during specified period (i.e., 1– 3 years) Two business analysis approaches: • Strategic analysis 



Focuses on both industry as a whole and firm itself How firm is performing 13

• Financial analysis


4/10/2012

Strategic Analysis Factors


Key industry strategic factors
• Barriers to entry • Power of suppliers • Power of customers • Existence of substitute products • Industry value chain • Nature of intra-industry competition



Firm-specific factors

4/10/2012

14

7

Strategic...
tracking img