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Q1 - Suggest one Hong Kong company currently only have bricks business, do you think it is appropriate to transform it into clicks business , why or why not ?

Q.2 - In Either cases of your Q1 answers , further explain how that company should do to maintain / enhance its competitive advantages using information technology ?

1 Answer

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  • W
    Lv 5
    7 years ago
    Favorite Answer

    One Hong Kong company currently only have bricks business:

    MUJI (Hong Kong) Company Limited (無印良品)

    a retailer of clothing, furniture and home accessories.

    - Bricks business model: where the companies maintain a number of

    physical stores in different parts of the city. They offer products to

    customers. The customers buy on location.

    - It is NOT appropriate to transform the bricks business into clicks business

    entirely.

    Reasons:

    - clicks businesses are single-channel Web firms that generate almost all

    of their revenue from online sales.

    - do not have to bear the costs associated with rental and maintaining

    physical stores, but they face large costs in building and maintaining Web

    sites and in acquiring a brand name presence.

    - face very low margins, therefore they must achieve highly efficient

    operations in order to make a profit.

    *********************************

    - Alternatively, the company can expand their bricks business model to

    include an online presence, i.e. the Bricks-and-Clicks model. It allows

    the customers to buy on location, or the customers can choose to buy

    online and pick up the goods at local stores or have products shipped

    directly to them.

    Reasons:

    - bricks and clicks firms have a network of physical stores as their primary

    retail channel, but have also introduced online offerings. They are often

    multi-channel firms with catalog or other retail channels already established.

    - have the high costs of maintaining physical stores and large number of

    sales staff, but they have an established BRAND NAME , a national and

    overseas customer base, warehouses, large scale, already trained staff,

    and consequently, much lower customer acquisition costs.

    - brand equity is an achieved asset which includes: brand associations,

    perceived quality, brand loyalty and brand awareness.

    - these firms are already used to operating within their usual profit margins

    and have already invested in the purchasing and inventory control systems

    that enable them to control costs.

    2014-02-16 02:46:04 補充:

    Q. 2.

    To maintain/enhance its competitive position, the company could install

    most updated products developed by information technology.

    Retail business hardware:

    - CPU, Monitor, Cash Drawer

    - Point Of Sale Bar Code Scanner

    - Point of Sale Receipt Printer, Card Reader/Swipe

    2014-02-16 02:50:22 補充:

    Fully integrated software (e-Commerce):

    - complete customer management

    - purchasing & receiving

    - inventory management

    - customized reporting

    - store transfers

    - developed Web-sites, networks, intranets, servers,

    databases, telecommunications

    - payment processing system

    2014-02-16 02:53:19 補充:

    - frequent buyer, gift-card, gift registry

    - general accounting & payroll software

    Information Technology skills involved:

    - windows administration

    - network administration

    - database management

    - programming languages e.g. C++

    2014-02-16 02:54:49 補充:

    - computer systems and architecture

    - software development

    - systems analysis

    - information systems design

    - business information systems

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