Shaye Trenda

ITS 380

Submitted on 2/2/18

Ch4 – Building an E-commerce Presence: Web Sites, Mobile Sites, and Apps: Dick’s Sporting Goods

C A S E    S T U D Y    Q U E S T I O N S

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, and mostly importantly they wanted 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 products, 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 website and using it with their current systems.

Step 2 involves moving its smaller brands to the new platform and continuing to develop the new platform.

Step 3 involves moving its main website, Dick’s Sporting Goods, onto the new platform.

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

The primary benefits include 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.

P R O J E C T S

2. Visit several e-commerce sites, not including those mentioned in this chapter, and evaluate the effectiveness of the sites according to the 8 basic criteria/functionalities listed in Table 4.11. Choose one site you feel does an excellent job on all aspects of an effective site. (8 criteria/functionalities are listed below in bold).

One site that does an excellent job on all aspects of effective site is Amazon since they give a very easy user interface which helps and encourages new as well as old users to use the platform. They have great functionality because it easy to use, the pages load and work properly and they also point the customer to product offerings that apply to them. It is also very informational because it is easy to discover and find the product you are looking for. The website has a simple fool-proof navigation, which applies to Ease of Use. There is redundant navigation because there is alternative navigation to the same product/content. You can buy items with one click, which applies to Ease of Purchase. The site works most popular browsers, I’ve never had an issue opening their site (multi-browser functionality). There’s Simple Graphics because there are no annoying or distracting graphics or pictures on their site. The site also has legible text because there’s no background colors that makes the text hard to read.

3. Imagine that you are in charge of developing a fast-growing start-up’s e-commerce presence. Consider your option 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?

I would develop the start-up with existing staff instead of outsourcing the entire operation. If my company is in charge of that operation, I would want to prove the quality and value of my company, and I do not want to leave the reputation of my company in someone else’s hands. If I had a company of this kind, I would make sure I am surrounded of professional that can perform a great job and solve our customer’s necessities. Outsourcing should be done for simple operation, for example, it does make sense that companies outsource the production of the components that they need to build a computer, but they do not outsource the complete operation. If my staff does the work we would have control of the entire operation, direct contact with the customer, and have a better outcome. On the other hand, if an outsourced company does the work, they will work fast to have it done as soon as possible to get pay, and you do not want your company to be known as a company that does not care about the customer. Maybe we can save some money if you outsource the operation, realize more websites to other companies, and make more money but the image of the company, in the long run, would be damaged and no one will contract our services.