E-Business
Many have agreed that e-business and e-commerce represent the new commercial trend of the 21st century. Indeed, they have argued that this is a much easier, cheaper and more efficient way of doing business. Partially, they are right, however, they underestimate some of the negative effects of e-business. These include security breaches that can cause financial frauds or extra costs related to maintaining and improving the e-commerce mechanism. We shall analyze below how e-business has developed at Home Depot, what it consists off and what its main advantages, limitations and risks were here.
The company was founded in 1978 and has grown to become the "world's largest home improvement specialty retailer and the second largest retailer in the United States." Indeed, sales have reached $58.2 billion in 2002 and the company continued to diversify its services so as to attract a larger category of consumers. Entering e-business was only one of the methods by which shopping at Home Depot became easier and simpler.
Having browsed the www.homedepot.com, I have noticed several defining elements of e- business at Home Depot. First of all, the website is not only a commercial portal. Besides the Browse and Buy Products option, the company offers theoretical advice on how to install or repair things within the house through its Know- How and Projects link and offers information on its Installation Services.
Having briefly analyzed the website, there are several advantages that are obvious and derive from the company's e-business. First of all, in terms of the marketing mix, promotion seems most privileged. Indeed, at minimum costs (only the creation and management of the website), the company can present all of its products and any...
This facility is complemented by the fact that any customer with an Internet connection can shop from his own home anything he wants.
In terms of the place element of the marketing mix, this means that every product is virtually in your own home, at any time of the day. The advantages this brings about are practically countless. First of all, it is to be assumed that anybody would rather buy from home rather than go all the way to the store, have to stay in line, etc.
Second of all, e- business means a certain reduction of costs from the fact that all the personnel that needed to physically work in the store are now needless. The distribution network needs to be supplemented, however, because one would estimate that the sales will increase when using e-business. On the other hand, the sales personnel is now much reduced, because e- business means an easier and efficient way to manage orders around.
The importance of the fact that the company is using an integrated set of services on its website is not to be minimized. Indeed, a person does not actually need to have the intention of buying a Home Depot product. He may be just searching for useful information in terms of repairing something in his house. However, once on the website, he may decide to take a look at some of the products Home Depot offers (again, we have a cheap and very efficient advertising form) and he may want to buy something from what the company has to offer. I am emphasizing here the fact that e-business may mean that a company can attract customers who are not necessarily set on buying a certain thing, but who may do so because of the system's easiness in use.
An additional advantage I…
