Finding Sustainable Profitability in Electronic Commerce Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

To maintain a competitive edge, web retailers should align their strategies with the product specifications and purchasing practices of customers in this segment of the market, according to the author. He divides the dot-com bubble of the retail market into four segments based on the type of goods sold, and describes the strategies required for success in each. The first segment is an undifferentiated commodity products, such as barrels of oil. The competitive advantage is given to the low-cost provider of economies of scale, low overhead, low cost of production, and efficient distribution. The second segment, a quasi-commodity products, such as books and toys that attracts many online retailers. The first engines can gain a competitive advantage, branding their web site using site-specific loyalty programs, virtual communities, and timely delivery. Later, the participants will meet the extreme difficulties. In the third segment, "look and feel" of goods, such as clothing, home furnishings, are different depending on their quality and reliability. Customers want to experience them in person before making a purchase. Dot-coms that do not create the products they sell will be forced to compete on price and find the field it is difficult to maintain. In the fourth segment, "look and feel" products with varying quality, such as fresh food and original works of art, each individual product is different from each other. Customers want to try these products to determine their quality before purchasing. Dot-com bubble, which create a reputation for quality and sell cheap goods to repeat customers have a better chance of success. "Hide
by John M. De Figueiredo Source: MIT Sloan Management Review 14 pages. Publication Date: July 1, 2000. Prod. #: SMR048-PDF-ENG