Lecture 4
Lecture 4 - Conclusion of Online Retailing: Introduction to Online Markets - Slides
- Online Retailing - a new(ish) business model
- Succesful internet retailer: Amazon.com
- The long tail effect
- Economies of scope
- Unsuccessful internet retailer: Pets.com, CDnow.com
- Here's a great idea - Pets.com
- Analogy versus analysis
- Dot Com Flops
- Framework for analyzing any internet retailing business
- Explain all the costs of retailing, using DUB pies example
- Explain how customer acquisition costs and shipping/fulfillment costs are a vital consideration
- Customer acquisition costs
- How it's affected by marketing strategy
- PR is often cost effective
- Customer search cost
- Risk
- Customer feedback helps search
- Cost of delay to the customer
- Cost of designing and operating the web site and transactions
- Small cost
- Explain how customer acquisition costs and shipping/fulfillment costs are a vital consideration
- Importance of profit: any fool can set up an internet business (and many did) - the question is, can you make a profit?
- When does online retailing make sense?
- What kinds of products?
- Gasoline? Clothing?
- Products versus service industries like Starbucks?
- Explain all the costs of retailing, using DUB pies example
- Succesful internet retailer: Amazon.com
- Data on online retailing
- Overall impact on the retail industry
- Music retailing e.g. (will look at overall music and other information industries too)
- Overall impact on the retail industry
- Existing businesses selling online: disintermediation, channel conflict
- Agent business models: travel agents, realtors etc.
- Direct sales models
- Catalog and mail order businesses
- Dell
- Online configuration
- Advantages of direct model
- Disadvantages
- Disintermediation and channel conflict
- Financial services
- Insurance
- Stockbrokers/wealth managers
- Full service brokers like Merrill Lynch faced competition from discount brokers such as E*Trade and Charles Schwab
- Personal computers - HP Compaq
- Realtors
- Facing online competition
- Federal Trade Commission forcing realtors in some states to allow discount brokers to access multiple listing service
- A May 28, 2008 Associated Press report says that in a settlement with the Department of Justice, the National Association of Realtors agreed to stop discriminating against web-based realtors for access to multiple listing services
- Pricing problems
page revision: 63, last edited: 15 Nov 2009 15:33