E-Business transformation-Sears Case Study

1

E-BUSINESS TRANSFORMATION AT THE CROSSROADS : DILEMMA

Kelompok 2:Danny D. Kosasih – Diah Saragih – Gede

Arya – Hari Tarigan

System Information Technology Case Study & Discussion

MM UGM AP 6B

http://www.sears.com/sr/javasr/home.do?BV_UseBVCookie=Yes&vertical=SEARS

http://www.aboutsears.com/

SIT ASSIGNMENT - MMUGM2

CONTENT

1. Sears History

2. Issues & Challenges

3. 3 IT Strategic Challenges

4. U.S Retail Industry Review

5. Trends In Online Sales

6. Key E-Business Initiative At Sears

7. Acquisition of Land’s End

8. E-Commerce Business Models & Strategy


Sears History

1888 - the company started in catalog business 1925 - expanded into retail store operations. Sears, Roebuck and Company becoming an icon in US retailing

industry in the following decades. 1992 - Sears hired a new Arthur C. Martinez, the pioneer of

Sear’s online sales.

1886 - Richard Sears began the R W Sears Watch Company in Minnesota.

1887 - Collaborate with A. Roebuck, and built Sears, Roebuck and Company.


Issues & Challenge Net Income fall $1.343 million (2000) to $735 million (2001) with

revenue level of $41.1 billion Broad range of product (appliances to apparel)

Dilemma whether to have multiple sites or unified & integrated sites

Foray into B2B e-commerce GlobalNetExchange partnership with Oracle Corp, Carrefour, IBM, etc in order to cut costs

Acquired Land’s End (2002), the largest US based specialty apparel company.

How to synergize Sear’s and Land’s End business How Sears take advantage of Land’s End strengths to improve

its own business effort


3 IT Strategic Challenges What was the best way to

utilize the website and internet to attract and sell a varied range of products?

How should Sear’s extended and enhance its B2B e-commerce initiatives to stay ahead of the pack and beat the competition?

Could Sear’s utilize Land’s End technological and operations capabilities to turn around its e-business?Sears’s Tower


US Retail Industry Review


Trends In Online Sale


Key Business Initiative @ Sears


Acquisition’s Of Land’s End’s


Recommended Actions

Optimize the IT technology to develop its e-business, if necessary, use IT external expertise.

Sear’s have to utilize the technology from Land’s End website in order to apply the same features and benefits.

However, branded products stay on Land’s End website


Industrial Competition(e-Retailers)Sears.com

JCPenney.comBestBuy.com

Modifikasi model dikutip dari Harvard Business Review, Maret 2001

SUPPLIER BUYER / End User

POTENTIAL ENTRANTS

SUBSTITUTIONS Traditional mall-based stores Traditional retail stores

Apparels Appliances Wholesalers &

Jobbers etc

Web Portals & Web Search Engines Thousands of independent retailers

in USA go online / e-commerce

CUSTOMERS Type of Buyers

Consumers

Market Place USA

North America Cyber Space; Cybernauts Segments

DISTRIBUTION Channels Web Portal $avers.com

EnvironmentalScanning (e.g.) - Wall Street Opinion- New Technology- Market Shifting- - Life Style, etc.

Internet & E-CommerceInternet & E-CommerceBusiness SituationBusiness Situationand Further Trendand Further Trend

Click & Mortar’sClick & Mortar’s- Present Market- Present Market- Future Market- Future Market

Click & Mortar’sClick & Mortar’s- Present Market- Present Market- Future Market- Future Market

E-Retailers Industry & Competitive Analysis


The E-Market System

Competition

COMPANY

Competitors

INTERMEDIARIES

DistributionEnd-UserOutlets

End-UserMarket

Economics

Politics

Legislation

Technology

Finance

Culture


The E-Commerce Competence

Clear e-market opportunityClear e-market opportunity

Appropriate e-market positioningAppropriate e-market positioning

Formal plan to exploit e-market opportunitiesFormal plan to exploit e-market opportunities

A qualitative model of competences to support & deliver an e-commercemarketing strategy

Strategice-market competencies

Financial resources to support e-market operationFinancial resources to support e-market operationFinancial resources competencies

Innovativee-marketproduct&services

Workforcewithappropriatee-marketskills

Quality tomeetexpectationsof e-marketcustomers

Productivity supportiveof e-marketoperations

Information System Capable of providing real time of e-market support


Individual Customer Contact Database

The E-Management System

An integrated e-commerce management system

Marketing Pre-Sales SalesPost-Sales

Support

BillingQualityControl

FieldService

Delivery

Individual Customer Contact DatabaseProduction, Procurement, Logistics and Operations

AccountingOther supporting activities and serviceslike mentioned in Porter’s Value Chain

Inte

rnet

Inte

rnet

Inte

rface

Inte

rface

Sup

plie

rsS

up

plie

rs

ConsolidatedCustomerDatabase

Transactionengine anddatabase


The E-Strategy OptionsAdopted from “e-commerce B2C” model of University of Pelita Harapan

Low Mid

Hi

Being The Pioneer

Watch It & Follow It

Buck The Trend

% of target consumers who are determined as e-shoppers

InformationOnly

InformationOnly

Subsume into existing businessSubsume into existing business

ExportExport

Treat asanotherchannel

Treat asanotherchannel

Setup asseparatebusiness

Setup asseparatebusiness

Pursueon allfronts

Pursueon allfronts

MixedSystem

MixedSystem

SwitchFully

SwitchFully

Risk & Return Level

Barnes & Noble

Barnes & Noble.Co

m

Amazon.CoAmazon.Comm


The E-Strategy Options