ITS 380 Global E- Commerce
Case Study Questions
1. Why did Dick’s decide to leave eBay and takeover its own e-commerce operations?
As Dick’s Sporting Goods’ e-commerce was getting larger, eBay was getting more expensive too. There were some problem doing business with eBay such as inflexible, flat charge from all the products despite their sizes. In other words, eBay was charging same price for cheaper and smaller products and bigger and expensive product. Also there was less flexibility and customization about using others’ system. So that it was better for Dick’s Sporting Goods to build their own infrastructure.
2. What is Dick’s omnichannel strategy?
They wanted to keep their brick and mortar strategy; in other words, their physical stores. So besides doing e-commerce, they will keep their physical stores and use them as both distribution center and showroom.
3. What are the three steps in Dick’s migration to its new website?
First step was to build and complete the development of its e-commerce platform and begin integrating its existing systems. Secondly, they begin moving its 2 of lesser brands, Field & Stream and Golf Galaxy onto the platform while continuing the development of platform. Finally, they relaunches its flagship Dick’s Sporting Goods site on the platform.
4. What are the primary benefits of Dick’s new system?
The new platform will pay itself in only 4 years of operation because it is saving at least $20 million each year compared to using eBay. It also gives full freedom and control of its customer’s data and platform design to Dick’s. Better data gives Dick’s better analyzing opportunity and understand their customer’s shopping pattern better. Features of the new platform includes the ability to buy online and pick up at store, the ability to ship from or to store.
1. Visit several e-commerce sites, not including those mentioned in this chapter, and evaluate the effectiveness of the sites according to the eight basic criteria/functionalities listed in Table 4.11. Choose one site you feel does an excellent job on all the aspects of an effective site and create an electronic presentation, including screen shots, to support your choice.
I chose Nordstrom Store’s website. I think they are excellent at doing what they are doing. Functionality is great; it is very easy to use and doesn’t buffer. Informational factor is excellent because they always updates their website and adding new products and they are very easy to find. Ease of use, and ease of purchase factors are excellent. Very easy to use and track my purchase. The website is assessable from any form of device and browser. Text and illustrations on the website is clear and clean. Overall, I really like their website.
2. Imagine that you are in charge of developing a fast-growing startup’s e-commerce presence. Consider your options 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 the estimated associated costs, compared with the alternative? (You’ll need to make some educated guesses here—don’t worry about being exact.)
If I were in that position to make a decision on either building in house or outsourcing, I would choose in- house option. If the company is fast- growing and will continue to grow in the future, building in- house online infrastructure will be the company’s asset and main operating tool in the future. Considering expensive cost of outsourcing and growing expansion of the company, outsourcing is not a good option in the long run just like Dick’s Sporting Goods.
In housing option might be expensive at first but it will definitely pay itself out in the future. This option is the best because it gives the company full control and freedom to how to do their business online. Existing staff who know everything about the operation can be trained to use the online platform but they will be much more efficient and effective compared to some computer professional from outside working on the company’s platform. We could use small web start0up costing $25,000 - $50, 000. Outsourcing can be several hundreds of dollars depending on the size.