Rei Data Warehousing

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1. What is a data warehouse and why is REI building one?

A data warehouse can be described as a “database that stores current and historical data of potential interest to decision makers throughout a company. The data originate in many core operational transaction systems, such as systems for sales, customer accounts, and manufacturing, and may include data from Web site transactions.1” REI is building a data warehouse to improve the company and to meet the needs of the customers. REI’s data warehouse will allow the company to view current and past data on sales, products, and customer information. The data warehouse will allow for the company to get to know the customers better and help in seeing which products are selling. The data warehouse will allow REI to become closer to the consumer and tailor goods to the needs of the consumer.

2. What are some of the disadvantages of consumer cooperatives compared to ‘traditional firms’?

Consumer cooperatives have some disadvantages in comparison to traditional firms. Consumer cooperatives require a high level of organization. Because the consumers are helping to make many decisions there are more legal responsibilities for the company. The company must listen to the consumers and also provide rules that the consumer cooperative must follow as a whole. While it is great for the consumers to be so involved, traditional firms have less of a hassle and don’t need to take so many extra steps when making decisions.

3. Describe some of the marketing strategies that REI’s data warehouse will allow them to use. Would these have been possible before the data warehouse was built?

REI’s data warehouse will allow them to create more marketing strategies, specifically on their online shopping Website. With the use of the data warehouse, REI’s website will be able to recognize customers when they log on to the Website. By doing this, REI can tailor products or information to the customer each time they log on....
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