ENTELLIUM, DIGG, PEERFLIX, ZAPPOS, AND JIGSAW: SUCCESS FOR SECOND MOVERS IN E-COMMERCE Case Study Questions:
1) Is the second-mover advantage always a good business strategy? Defend your answer with examples of the companies in this case.
Front-runner businesses can:
Increase services given during and after a sale, intended to guarantee a satisfied customer. Although the product you sell through e-commerce may completely satisfy the customer, the extra services given by company will often determine whether it get repeat and referral business. Poor or nonexistent customer service can result in negative word-of-mouth advertising that will turn people away from company business. Using secure protocols in electronic payment service and support the mutual trust and secure access between the parties in an e-commerce transaction by authenticating users, authorizing access and enforcing security features. Front-runner businesses can build a good reputation for high quality, guaranteed satisfaction, and top customer support while shopping and after the sale service. This would challenge the second-movers and make it a little more difficult to compete against the front-runners. Front-runner businesses can watch and examine the second-movers and improve on their plans and strategies. Front-runners can offer new, smart, attractive, and innovative products and services at competitive prices. Increase their ownership and control through acquisition. This is where one organization purchases another so that the buyer assumes control. Increase the amount of investment needed to enter into the market, thereby deterring attempts made by the second-movers to reach in ‘first place’ or discouraging them from competing at all. Form contracts with main suppliers and manufacturers in the market. Keep all of their business plans and strategies confidential. This could...
Please join StudyMode to read the full document