Case #2: Successories
1. Should Successories’ executive team transform the company from a catalog business to an online business? Explain your reasoning. We think that the Successorie’s executive team should transform the company from a catalog to business to a mostly online business. Their sales have been declining and Miler has run out of cost cutting options. Successorie’s mails out 24- 30 fat catalogs each year to tens of thousands of people. We think that they should print a couple of smaller catalogs and send to their most valuable clients, Successories should consider sending out postcards or flyers to the rest of the customers to advertise their new and improved website. Consumers are changing and businesses as well, consumers now days enjoy shopping online. As long as their website is clear, simple and had all the information needed on a product this idea can help them increase sales and decrease expenses. Financial forecasts showed that a successful e-commerce strategy could increase sales by 20 percent and reduce production costs from 25 percent to less than 15 percent of sales. The cost of upgrading the web site is $400,000, and the company’s cash balance is tight. If the e-commerce strategy fails, the company would most like have to close its doors. 3. Which social networking tools should Successories use to market its product line? What specific recommendations can you make for using these tools? We believe that the best networking tools right now are Facebook, MySpace, Twitter and instegram.Successories by going e-commerce; they would have websites like facebook, myspace and twitter, were customers can follow them online and “like” their new products, by doing so they are also getting their customers opinion on their new lines of product. They could also have surveys online for customers to grade their products. Successories could upload...
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