E-commerce 2021-2022: Business. Technology. Society., Ebook, Global Edition


What kinds of services could we provide our customers that would attract them to our sites?



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What kinds of services could we provide our customers that would attract them to our sites?

You can suggest that many people who buy tools may not know how to use them most appropriately or effectively. One of the best ways to educate consumers is through vid­eos, which could be delivered via an official company YouTube channel or provided on the firm’s websites, with links to the YouTube channel.

  1. What kinds of strategic partners should we be working with to develop our online sales?

You could point out that very successful firms rarely do everything themselves. The firm should develop relationships with key providers of services such as UPS and FedEx for logistics and shipping; online payments systems like PayPal and credit card providers; technology providers to handle the supply chain and warehousing automation; and
customer relationship management firms like Salesforce to maintain a close connection with customers. Firms specializing in e-mail campaigns, search engine optimization, video production, and mobile and social media marketing are also important strategic partners.

  1. In the B2B market we will initially be an e-distributor, selling our products online. What kinds of other opportunities should we explore in the B2B arena?

Other B2B business opportunities that may be relevant include participating in exchanges, establishing relationships with e-procurement firms, and/or seeking to become a preferred vendor as part of a private industrial network.

  1. For many of our products we face stiff competition from low-cost imported tools. What would you recommend that the firm's strategy be in meeting this competition?

You can suggest that one way to compete on price with low-cost imports is to introduce a low-cost line of tools. Although low in price, they might have margins equal to or greater than tools made in the United States. Another strategy would be to move production to low-cost countries but maintain the same high quality. On the other hand, a differ­entiation strategy might be best by offering higher-quality “professional” level tools to consumers, relying on the existing brand strengths to sell at higher prices. The firm can choose to develop a focused strategy based solely on the U.S. market, or alternatively, to develop foreign sales and broaden the scope of competition. Which strategy, or combina­tion of strategies, to pursue would take some careful analysis.

  1. On the sell side, do you think we should open stores on Amazon, eBay, or other large online retailers, or should we put all our efforts into developing our own branded websites?

You might suggest that many manufacturers rely on both their own sites, as well as Amazon, to sell to consumers. Given Amazon's broad reach it would seem a good idea to use Amazon as a platform for certain very popular tools, and have links to the firm’s own websites for consumers who want to see more of the company's products.


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