Lesson #6, Assignment #4 - Read the 'Business...

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Read the 'Business Problem-Solving Case' on pages 327-329 of your text, entitled "Can J&R Electronics Grow with E-commerce?" and address the case questions in an essay of 500-600 total words: 1. Analyze J&R Electronics using the competitive forces and value chain models. What is its business model and business strategy? How does it provide value? J&R’s use of Loyalty’s Labs’ Blue Martini software is a classic example of Michael Porter’s approach to using the internet as an “enabling strategy” and as a “complement to and not a cannibal of traditional ways of competing”. Unique visitors are customers that go directly to the J&R site versus arriving through another site. Once there, J&R offers these customers loyalty purchase discounts and a chance to see what differentiates J&R from other sites. Since online consumer electronics retailers essentially sell the same products, J&R is working hard to differentiate itself in any way it can and avoid getting caught in a price war, even though they are competitive on price. J&R would like to sell to, and retain customers by showing them how knowledgeable their sales staff is, how rewarding their loyalty program is, and how cutting edge! They are in receiving new technology earlier than other electronics retailers. These are the values that made J&R great before e-commerce was important, and these are the business benefits that are realized by using such a flexible and powerful CRM platform such as Blue Martini. 2. What is the role of the Internet in J&R’s business strategy? Is it providing a solution to J&R’s
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This note was uploaded on 04/29/2011 for the course INFORMATIO MIS taught by Professor Daniel during the Spring '11 term at Antelope Valley College.

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Lesson #6, Assignment #4 - Read the 'Business...

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