CH 4

 

Case Study Questions

 

1. Why did Dick’s decide to leave eBay and take over its own e-commerce operations?

The cost of working with eBay was growing rapidly as Dick’s became more successful in online sales. The fees eBay charged rose a percentage of sales even though it cost eBay no more to fulfill an expensive order than an inexpensive order.  Dick’s also wanted to customize its web operations to the needs of its customers, in particular to develop an omnichannel business.

2. What is Dick’s omnichannel strategy?

Dick’s plans to use its physical stores as mini-distribution centers, fulfilling online orders from local and regional customers from physical stores located nearby. The stores can also act as showrooms for its goods, and customers could pick up online orders in nearby stores the same day.

3. What are the three steps in Dick’s migration to its new website?

Step 1 involves developing the new site and integrating it with their existing systems. Step 2 involves moving its lesser brands to the new platform and continuing to develop the platform. Step 3 involves moving its primary website, Dick’s Sporting Goods, onto the new platform.

4. What are the primary benefits of Dick’s new system?

Among the primary benefits are the ability to buy online and pick up in store and the ability to test different pricing and marketing approaches by region. Other benefits include an improved search engine and better analytics capabilities. Dick’s also hopes to achieve higher sales because multi-channel customers spend three times as much as single-channel customers.  Finally, the new system allows Dick’s to speed up the innovation and development cycles of its online and physical store operations.

Projects

Imagine that you in charge of developing a fast-growing startup’s e-commerce presence. Consider your opinion for building the company’s e-commerce presence in-house with existing staff or outsourcing the entire operation. Decide which strategy you believe is in your company’s best interest and create a brief presentation outlining your position. Why choose that approach? And what are estimated associated costs, compared with the alternative?

Actually I think a hybrid approach would be best. To outsource at the beginning, bring in an expert to get us started and train the employees, and then turn to the in-house strategy. Because it’s not only difficult to find a company that you trust to out source to it’s also expensive and time consuming. So having someone come in to train everyone and help with the initial set-up makes way more sense.

Choose one of the open source web content management systems such as WordPress, Joomla or Drupal or another of your own choosing and prepare an evaluation chart similar to that required by Project 4. Which system would you choose and why?

I would honestly choose WordPress just because it’s free, it comes with the most free plug-ins, it updates frequently, and it’s honestly really popular so you know it’s going to be compatible with a lot of platforms.