A Case Study: How a Retail Jewelry Store Learned to Compete in the E-Commerce Market Place

摘要

The Case Study describes how a retail jewelry store adapted to a new e-commerce market place. Until the mid-1990s, their marketing strategy included (1) a large dramatic sign visible from surrounding streets, (2) local print and radio advertising, (3) a sales staff that aggressively pushed the perceived value and emotional component of jewelry, and (4) an after-sales follow-up program. Typical customers were in the lower to middle socio-economic segment. E-commerce created more knowledgeable customers who recognized their buying alternatives. The Store reacted by developing several proprietary web sites, displaying products in the store "as seen on " the home shopping networks or on various web sites, and offering classes on how to become a more knowledgeable jewelry shopper. During the implementation of the e-commerce changes, problems arose in two areas: project management issues (deadlines, staffing, testing) and cultural adaptation issues. Once these issues were effectively addressed, and the e-commerce changes were implemented, sales stabilized and returned to prior levels. The Case Study explores a well-known strategic principle: all organizations must monitor their changing environment and adapt accordingly. E-commerce is a current example; there will always be others.