Estore at Shelll
Executive Summary
In recent years there has been shift in the fuels and lubricant marketplace that has resulted in more price-sensitive customers and a growing downward pressure on Shell Canada’s margins. Due to the financial pressure to reduce costs, Shell Canada launched an online, self-serve “eStore” to their agricultural customers in hopes of streamlining their business, cutting costs and salvaging their shrinking profit margins. The purpose of this case report is to address and analyze the issues surrounding eStore, identify the best alternative to solve the key issues and determine the most appropriate method of implementation. It is anticipated that these findings will illustrate the strengths and weaknesses of potential solutions, which will in turn lead to actual implementation of the best solution.
Key issues encompassing Shell’s shrinking profit margins, communication and delivery and technology were identified and discussed. Using a SWOT analysis and the Porter’s Five Forces model, internal and external factors affecting the eStore business plan were analyzed. In accordance with the analysis, three alternatives were generated including the redesign of eStore website, abandonment of the online project and the generation of alternative self-serve strategies.
After considering which solution would best serve the eStore initiative at Shell Canada, it was determined that continuing with the project and redesigning eStore would be most effective and a plan of implementation was established. It is recommended that Shell Canada follow the implementation plan in order to attain maximum success for eStore. Despite some reluctance of agricultural customers to adopt an online ordering system, there are clear opportunities for Shell’s eStore initiative to succeed in this market.
Introduction
As a leading manufacturer, distributer and marketer of refined petroleum products, Shell Canada limited is one of the largest integrated petroleum companies in Canada.
In recent years there has been shift in the fuels and lubricant marketplace that has resulted in more price-sensitive customers and a growing downward pressure on Shell Canada’s margins. Due to the financial pressure to reduce costs, Shell Canada launched an online, self-serve “eStore” to their agricultural customers in hopes of streamlining their business, cutting costs and salvaging their shrinking profit margins. The purpose of this case report is to address and analyze the issues surrounding eStore, identify the best alternative to solve the key issues and determine the most appropriate method of implementation. It is anticipated that these findings will illustrate the strengths and weaknesses of potential solutions, which will in turn lead to actual implementation of the best solution.
Key issues encompassing Shell’s shrinking profit margins, communication and delivery and technology were identified and discussed. Using a SWOT analysis and the Porter’s Five Forces model, internal and external factors affecting the eStore business plan were analyzed. In accordance with the analysis, three alternatives were generated including the redesign of eStore website, abandonment of the online project and the generation of alternative self-serve strategies.
After considering which solution would best serve the eStore initiative at Shell Canada, it was determined that continuing with the project and redesigning eStore would be most effective and a plan of implementation was established. It is recommended that Shell Canada follow the implementation plan in order to attain maximum success for eStore. Despite some reluctance of agricultural customers to adopt an online ordering system, there are clear opportunities for Shell’s eStore initiative to succeed in this market.
Introduction
As a leading manufacturer, distributer and marketer of refined petroleum products, Shell Canada limited is one of the largest integrated petroleum companies in Canada.