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    Case Study - Information Systems - E-Commerce

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    Entelliu, Digg, Peerflix, Zappos, and Jigsaw: Success for Second Movers in e-Commerce.
    Real World Case 2

    See details attached

    first movers
    second movers
    later mover
    prospective new entrants
    differentiate yourself
    front runner companies

    Questions 1, 2 & 3 only.

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    Solution Preview

    1. Is the second-mover advantage always a good business strategy? Defend your answer with examples of the companies in this case.
    The second-mover advantage is often a good business strategy, for many reasons.
    The main advantage is that the new company has plenty to learn from the successes and
    failures of existing companies. It has an opportunity to improve on what leaders are
    doing, in terms of improving sales and customer service. To compete with
    salesforce.com, an online software vendor, Paul Johnston has focused on usability and
    customer support, to offer Entellium. Creating a product that is more user-friendly is
    one way in which the software vendor has planned to beat its competition. Another
    strategy is to offer customer support 24 hours a day, 7 days a week. Having unlimited
    access to customer support makes it less risky for those businesses who are apprehensive,
    to take chances and try a new product.
    Paul Johnston has taken a product that the leader offers and made it better for the
    consumer in many ways. "Lowe's, with its brighter stores, wider aisles, and arguably
    more helpful salespeople, has positioned itself as the friendly alternative to Big Bad
    Orange" (Birger, 2006). A more user-friendly alternative, with more customer service
    availability, is the approach that Johnston has taken with Entellium enterprise software.
    The strategy is very similar to that of Lowes. Taking an existing product and delivering it
    Better is the strategy chosen by Johnston.
    To compete with online news sites, Digg.com has taken a new approach, in how news
    is delivered. The news site is more interactive and involves readers. It allows submission
    of news articles by anyone who wants to take the time to write a story. In addition, it lets
    readers vote on stories and places highly ranked articles on the front page. With many
    online news agencies, it is the agency that decides which stories are most news-worthy.
    The typical online news model fails to consider the reader's opinion or input. Barb Palser
    (2008), points out that the efforts of news agencies to engage readers, such as by
    developing podcasts and comment feeds, did nothing to increase readership.
    Digg.com provides a news site where readers are an important consideration. It is
    more than simply the design of the site, that gets readers' attention. It is the opportunity for
    readers to feel important, by submitting their own stories. Like offering a better method of
    providing customer service, such as with the Entellium enterprise software, Digg.com
    aims to reach readers, by considering their needs and desires, in selecting top news
    stories. Digg.com takes an ordinary online business model for news and alters it to work
    somewhat like a social networking site. The focus is definitely more customer-centric.
    Peerflix, a DVD exchange site, follows the Netflix site, by also combining the
    strategy with new concepts or different features. Understanding how both eBay and
    Netflix work, gives the second-mover an opportunity to take the best features of both
    business models and turn them into something unique. Billy Mc Nair and Danny
    Robinson have taken the benefits of Netflix, in offering new or never seen DVDs
    to a wide range of movie viewers. They have taken the concept of an online auction
    like eBay and have turned it into an ...

    Solution Summary

    The solution discusses a case study on information systemsm and e-commerce.