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MIS case 9-3
This document discusses a management information systems course case study. It provides details on the group members working on the case study, which focuses on e-commerce. It discusses concepts like first movers, second movers, and late movers in market entry. It also describes advantages and disadvantages for first and second movers. The document includes questions and activities related to e-commerce company strategies as either first or second movers.
MIS case 9-3
- 1. Management Information System(GSM5170) GROUP MEMBERS: Case 9-3 Mahdi Mesbahi (GM04701) ` Atousa Jafarian (GM04704) Somayeh Rezaei (GM04675) Mina Abbar (GM04665)
- 3. e-commerce Introduction •First-movers: these companies take the first action in the market strategically or tactically. •Second-movers: these companies respond to the first-movers action. •Late-movers: these companies accept the lowest risk to enter the market. Page 3 of 28
- 4. 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
- 5. 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
- 6. 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
- 7. e-commerce Question 1 Page 7 of 28
- 8. e-commerce Question 1 Late Second First Mover Mover Mover Follower Developer Innovator Page 8 of 28
- 9. 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
- 10. e-commerce Question 2 Page 10 of 28
- 11. 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
- 12. 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
- 13. 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
- 14. e-commerce Question 3 Page 15 of 28
- 15. 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
- 16. 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
- 17. e-commerce Activity 1 Page 17 of 28
- 18. 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
- 19. 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
- 20. e-commerce Activity 1 digg.com • hiring a direct sales team • emphasized some of the company’s main preferences Page 20 of 28
- 21. 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
- 22. e-commerce Activity 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
- 23. e-commerce Activity1 • 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
- 24. e-commerce Activity 1 Dun & Bradstreet subsidiary • gathered the database of 28 million public and private companies Page 24 of 28
- 25. e-commerce Activity 2 Assume you will start an Internet-based business similar to one of those mentioned in this case or another one of your choice. Would you be a first, second, or later mover in the market you select? How would you differentiate yourself from other competitors or prospective new entrants? Break into small groups to share your ideas and attempt to agree on the best Web-based business opportunity of the Page 25 of 28 group.
- 26. e-commerce Activity 2 PriceSmart • Second-mover • Upgrading its strategy from Brick-and-mortar to Click- and-brick strategy Page 26 of 28
- 27. e-commerce Activity 2 Differentiates 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
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- 29. Present like Professionals Created by: Mahdi Mesbahi mahdi.mesbahi@gmail.com