Management Information System (GSM5170)                                GROUP MEMBERS: Case 9-3                       Mahdi...
e-commerce     Introduction•First-movers: these companies take the first action in the marketstrategically or tactically.•...
e-commerce      Introduction•First-movers advantages:  •The resources, capabilities, and merits that  help them to be the ...
e-commerce      Introduction•First-movers disadvantages:  •There is more risk to success as a  first-mover, because they w...
e-commerce     Introduction•Second-movers advantages:  •They usually imitate or use first-mover’s plan  to reach to their ...
e-commerceQuestion 1             Page 7 of 28
e-commerceQuestion 1 Late       Second       FirstMover       Mover       Mover Follower   Developer   Innovator          ...
e-commerce     Question 1•Second-movers disadvantages:  •To be a real successful, companies always looking  for the ways t...
e-commerceQuestion 2             Page 10 of 28
e-commerce   Question 2• Observe the second-movers and improve on  their tactics.• Build a reputation for high quality, gu...
e-commerce   Question 2• Increase their ownership and control through  acquisition.• Increase the amount of investment nee...
e-commerce   Question 2• Keep all of their business plans and strategies  confidential.• Own the ideas of its employees, o...
e-commerceQuestion 3             Page 15 of 28
e-commerce       Question 3• Five strategies :   1. Be better, faster, cheaper, easier   2. Trip up incumbents with tactic...
e-commerce       Question 3• Five strategies :   5. Follow the biggest leader you can find   6. Aim for the leader’s Achil...
e-commerceActivity 1             Page 17 of 28
e-commerce    Activity 1        Entellium company• Strategy of second movers  were not useful• they were cheating in their...
e-commerce    Activity 1                digg.com• could observe more than 236 million  per year (in 2008)• this site is kn...
e-commerce Activity 1            digg.com• hiring a direct sales team• emphasized some of the company’s main  preferences ...
e-commerce   Activity 1                   Peerflix• Rivals were counteracted all Peerflix’s attempt  to be number one• att...
e-commerceActivity 1         • outstanding online shoe store         • the prior company in this field           is Zappos...
e-commerce  Activity 1• its database reached from 200,000 to 2 million  contacts• Jigsaw made ready and offering an online...
e-commerce   Activity 1     Dun & Bradstreet subsidiary• gathered the database of 28 million public and  private companies...
e-commerce    Activity 2Assume you will start an Internet-based businesssimilar to one of those mentioned in this case ora...
e-commerceActivity 2         PriceSmart             • Second-mover             • Upgrading its strategy from              ...
e-commerce   Activity 2Differentiates its business from new              entrants: • Creating convenience for busy and dis...
Thank You
Present like Professionals                     Created by:                               Mahdi Mesbahi                    ...
MIS case 9-3
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MIS case 9-3

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MIS case 9-3

  1. 1. Management Information System (GSM5170) GROUP MEMBERS: Case 9-3 Mahdi Mesbahi (GM04701) ` Atousa Jafarian (GM04704) Somayeh Rezaei (GM04675) Mina Abbar (GM04665)
  2. 2. e-commerce Introduction•First-movers: these companies take the first action in the marketstrategically or tactically.•Second-movers: these companies respond to the first-moversaction.•Late-movers: thesecompanies accept thelowest risk to enter themarket. Page 3 of 28
  3. 3. e-commerce Introduction•First-movers advantages: •The resources, capabilities, and merits that help them to be the first entrances and gain a powerful competitive advantages by innovative actions. •As they are alone in a monopoly market, they have more chance to earn profit, get customer loyalty, and make increase barriers for other probable competitors. Page 4 of 28
  4. 4. e-commerce Introduction•First-movers disadvantages: •There is more risk to success as a first-mover, because they will face to the unknown factors more than next entries •Second-movers can reduce their cost by reengineering the processes. •There is more potential risk due to the extending and arranging the market Page 5 of 28
  5. 5. e-commerce Introduction•Second-movers advantages: •They usually imitate or use first-mover’s plan to reach to their results. They can evaluate the first-mover’s customers’ reaction and analyze the market critical issues. •Quick response to firs-mover’s action is a gold key for second-movers to avoid the risks faced by first runners. If they recognize they right strategy and act well, they can get the customers’ loyalty even more than first-movers. Page 6 of 28
  6. 6. e-commerceQuestion 1 Page 7 of 28
  7. 7. e-commerceQuestion 1 Late Second FirstMover Mover Mover Follower Developer Innovator Page 8 of 28
  8. 8. e-commerce Question 1•Second-movers disadvantages: •To be a real successful, companies always looking for the ways to stand on the first step to keep themselves away of the new competitors in the market. •Second-movers usually emphasize the faults of the front runners and offer the solution to them. •For example salesforce.com website was not user-friendly, Slashdot’s website allows users to blog, and consumers can rent DVDs online from the Netflix.com cheaper. Page 9 of 28
  9. 9. e-commerceQuestion 2 Page 10 of 28
  10. 10. e-commerce Question 2• Observe the second-movers and improve on their tactics.• Build a reputation for high quality, guaranteed satisfaction, and top customer support while shopping and after the sale. Page 12of 28
  11. 11. e-commerce Question 2• Increase their ownership and control through acquisition.• Increase the amount of investment needed to enter into the market• Form contracts with key suppliers and manufacturers. Page 13 of 28
  12. 12. e-commerce Question 2• Keep all of their business plans and strategies confidential.• Own the ideas of its employees, once it is done on the company’s time using the company’s resources• Continue establishing mutual trust and secure access between the parties in an e-commerce transaction Page 14 of 28
  13. 13. e-commerceQuestion 3 Page 15 of 28
  14. 14. e-commerce Question 3• Five strategies : 1. Be better, faster, cheaper, easier 2. Trip up incumbents with tactics from other fields 3. Swipe their business models and start your own race Page 16 of 28
  15. 15. e-commerce Question 3• Five strategies : 5. Follow the biggest leader you can find 6. Aim for the leader’s Achilles’ heel Page 17 of 28
  16. 16. e-commerceActivity 1 Page 17 of 28
  17. 17. e-commerce Activity 1 Entellium company• Strategy of second movers were not useful• they were cheating in their activities• didn’t present the correct or exact statistics• they misrepresented their revenue. Page 18 of 28
  18. 18. e-commerce Activity 1 digg.com• could observe more than 236 million per year (in 2008)• this site is known as one of the best news sites in the world• maximize companies’ obtainable profit• decline the existence cost of the company• reducing the number of workers Page 19 of 28
  19. 19. e-commerce Activity 1 digg.com• hiring a direct sales team• emphasized some of the company’s main preferences Page 20 of 28
  20. 20. e-commerce Activity 1 Peerflix• Rivals were counteracted all Peerflix’s attempt to be number one• attainment of Peerflix by LiveUniverse in September 2008 Page 21 of 28
  21. 21. e-commerceActivity 1 • outstanding online shoe store • the prior company in this field is Zappos • perfect culture of the company • superior customer services Page 22 of 28
  22. 22. e-commerce Activity 1• its database reached from 200,000 to 2 million contacts• Jigsaw made ready and offering an online business directory of more than 11 million business contacts Page 23 of 28
  23. 23. e-commerce Activity 1 Dun & Bradstreet subsidiary• gathered the database of 28 million public and private companies Page 24 of 28
  24. 24. e-commerce Activity 2Assume you will start an Internet-based businesssimilar to one of those mentioned in this case oranother one of your choice. Would you be a first,second, or later mover in the market you select? Howwould you differentiate yourself from othercompetitors or prospective new entrants? Break intosmall groups to share your ideas and attempt to agreeon the best Web-based business opportunity of the Page 25 of 28group.
  25. 25. e-commerceActivity 2 PriceSmart • Second-mover • Upgrading its strategy from Brick-and-mortar to Click- and-brick strategy Page 26 of 28
  26. 26. e-commerce Activity 2Differentiates its business from new entrants: • Creating convenience for busy and disable users • User friendly and easy to access • Providing customer satisfaction through its 24/7 hours customer service support Page 27 of 28
  27. 27. Thank You
  28. 28. Present like Professionals Created by: Mahdi Mesbahi mahdi.mesbahi@gmail.com

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