1) How does Freitag.ch differentiate itself in the transaction process? Explain the operational concepts as well as corresponding IC-Systems. Figure out specialties in the phases and try to derive, why Freitag.ch decided on this concept. Operating in the market since 1993, Freitag.ch became a successful business for producing handbags followed by other related products (who also resulted very efficacious findings). This business was built up based on the principle of making something useful from waste. (http://www.freitag.ch/support/faq) This is a factor, which differentiates it from the production point of view. Among the phases of transaction processes Freitag.ch searches for truck tarps, bicycle inner tubes, seat belts and recycled airbags, its raw materials for the bags. For the procurement of these materials Freitag.ch gets in contact with everyone willing to sell such used products by its communication ways on the official website. (http://www.freitag.ch/tarps ) For this purpose a flyer is also prepared which orients better the potential suppliers. (http://www.freitag.ch/medias/sys_master/8807415382046/TtSF_e_v2.0_FINAL.pdf )
The official website is build upon a Service Oriented Architecture and mashups to ensure the following products and services to both customers and suppliers: -Online store
-Updated e-catalogues of products
-Attractive and informative video presentations
-The company history
-Facts and figures
All the above mentioned services and information offer a complete view of what Freitag.ch really is and how it works, appealing many clients and suppliers. Not only confirm their success but they also make a serious presentations in relation with suppliers giving all needed details and terms of collaboration conditions. (http://www.freitag.ch/agb )
2) Does freitag.ch follow a multichannel strategy, concerning their distribution channels? Please describe, what problems may result from different (one-or multichannel-channel-) distribution strategies, and how they are (or may be in future) handled by Freitag.ch .
Freitag.ch relies on multi distribution channels. It offers: online shopping of the products
stores in many cities around the world
different retailers contracted
Using a multichannel distribution strategy enlarges the segment of customers Freitag.ch reaches. On the other hand it has its risks. For example: letting other retailers to sell its products, Freitag.ch risks not to sends to its clients the appropriate message that its actual stores represent. It is obvious that a part of the fans of freitag.ch are seduced by the fact that it makes useful wasted resources, not only when producing but also for the stores they build. What Freitag brothers first wanted was to sell bags-made-from-tarps in a shop-made-from-containers actualizing their motto of not wasting even on their stores. This is a very important message for a considerable part of the clients, which risks missing on other retailers’ stores. To avoid it Freitag should be more selective and a bit imposing of its basic principles when contracting retailers.
3) Which general E-Business-strategy is carried out by Freitag.ch at the moment? Try to find out about their business model (with its partial models) and basic strategic concepts – as far as possible with their situation in mind. There are three ways a company can choose to compete in the market and seduce the customers: Differentiation strategy –It is a strategy whereby a marketer offers a product as unique in industry by proving that it provides a distinct advantage over other products by setting it apart from other competitors’ brands in some way or the other, besides price. Cost leader strategy – is based on a marketing strategy in which price is the main strategic tool and where the business generates economic value by having lower costs than...
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