Chapter 4: Dickís Sporting Goods:

Case Study

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

Dickís Sporting Goods was an early believer of the potential of e-commerce and grew at fast rates. However, the commerce soon realized that they were throwing away money from their partnership with eBay since they handled most of their fulfillment process and most other aspects of their e-commerce presence. Moving their operations internally had saved them money and time. Not only this but they also were able to adjust their software and had easier access to their customer data at the same time.

2.     What is Dickís omnichannel strategy?

Dickís didnít want to be stuck to their brick and motor stores and knew that they needed to expand past their physical limitations. This meant that they needed to expand sales through the internet, which allowed them to reach a greater customer base. The ability to generate customers from their e-commerce business was the thing that set them apart from their competition. This allowed them to take a greater portion of the market and expand from a small business to an large corporation that has extensive resources. †

3.     What are the three steps in Dickís migration to its new website?

The first step that Dickís took was too abandon their partnership with eBay. Step two was to set up the software and get it integrated to their company specifications. This meant that they had to create, design, and determine how to operate this software before it could launch. Finally, they took two of their lesser brands and inputted them into the website as a test. This caused the brands to grow at a faster pace and soon Dickís entire operations was on the e-commerce website.

4.     What are the primary benefits of Dickís new system?

By creating their own e-commerce website, Dickís was able to collect their customers data and have it readily accessible. This also meant that the team was able to create ways for customers to obtain rewards by going near the store and having their rewards cards generate coupons for the store. Having their own e-commerce also allowed them to forgo their transaction fees with external distributors and create their own base of operations. If Dickís opened a new store in a region then they would find their sales had doubled from their e-commerce presence.


2. Visit an e-commerce website and describe the functions used in table 4.11.

The global e-commerce giant, Amazon, has the power to monopolize the market and robots to fight bears with their mace. However, the website functionality is quick, easily navigated, and will generate top items based on previously looked at and bought items. Secondly, Amazon is strong in informational technology, the company provides links to the suppliers of the goods so that they can learn about their products. Thirdly, amazon is incredibly easy to use, especially with a membership that allows the users a few simple clicks to purchase some items. Fourthly, the website has redundant navigation that allows users to find products from many different ways including the search bar, hamburger navigation, and related items. Fifth is amazonís ability to allow customers to purchase goods in a few simple clicks that even saves the credit card for easier checkouts. Sixth would be Amazonís ability to work with any web browser even though the most fluent in my opinion is Google Chrome. Second to last is their simple graphics, there is nothing complex that Amazon is trying to use to distract you from the meaning of the universe or something. Last but not least, the company has created a website that isnít smeared with different fonts, text sizes, or a kaleidoscope of colors.

3. Imagine that you are in charge of developing a fast-growing startupís e-commerce presence.

The strategy that I would use would focusing on brand awareness and start building the brand through existing customers. After building this brand from word of mouth, then the next step would be to draw in new customers through advertisements on social media, TV, and other platforms. The final step would be trying to expand our goods and services that we can provide to expand the e-commerce into something bigger than before. Most business choose to rely on their existing goods and services to draw in customers, however, most customers are looking for the next big thing. This means that customers want to see change and adaption to the cultural and social climate. The associated costs would start out small since the website will be known to mostly existing customers, however, once past the test phase, then costs will increase through advertisements, and even further increase by adding new goods and services. However, once everything is implemented, the business should be running at an optimal level as to offset theses costs and see greater profits.