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Once Proudly Web Only… (NYT)

Once Proudly Web Only… (NYT). Change: - 2007: “(Opening) Stores were a bad economic decision ” - 2012: “ E-commerce does not mean that the offline world is going away ”  A takeaway 2. New idea about offline stores: Store as a showroom  A takeaway. Once Proudly Web Only… (NYT).

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Once Proudly Web Only… (NYT)

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  1. Once Proudly Web Only… (NYT) Change: - 2007: “(Opening) Stores were a bad economic decision” - 2012: “E-commerce does not mean that the offline world is going away”  A takeaway 2. New idea about offline stores: Store as a showroom  A takeaway

  2. Once Proudly Web Only… (NYT) 3. An Example of a New Type of Offline Store - Appointment only: - Partitioning attributes: fit and look  ??? color and design  ??? - A challenge : From Web to Offline Store 4. What is Your Key Takeaway?

  3. Big Brewers Are Sidling into Retail Issue: Legal restrictions Brewers’ Responses: Brew-pubs Licensing Benefits: Marketing, shelf space Potential Danger of the strategy

  4. Liquor Sales In Washington What is the key issue here? Costco’s Arguments - Government Store - Bypass distributors Liquor Distributors’ Argument Result of the Ballots Whose view do you support and why?

  5. How Automakers Keep You Coming Back Your Favorite Car Brand? Why is loyalty important for automakers? Tools for loyalty Incentives Dealer services Financing Loyalty and Resale Value (Chart)

  6. Barnes & Noble and Nook (WSJ) What are the two key threats for B&N? Decision: Number of stores from 689 to 450 to 500. “Mainstream booksellers eventually will become a thing of the past”  Nonsense? What can B&N do to survive and thrive?

  7. Barnes & Noble and Nook (WSJ) 5. E-book market and B&N - Which type do you prefer? Paper or Digital? 6. What to do with Nook? - Declining e-book market share: 20%  27% - “Barnes & Noble needs to sell its own tablets if it is to retain a decent market share of digital content.” - Make or Buy?

  8. Coke’s Distribution Problem (circa 2006) Historical Background - Current distribution system for soda pops - Why current system? - Problems of the current system 2. What is the key issue? Coke’s view versus independent Coke Bottler’s view (www.beverage-digest.com) 3. Enter the Wal-Mart! - Direct-to-Store Delivery  Direct-to-Warehouse Delivery - National Account Management Issue 4. Lawsuit and Settlement

  9. Wine Distribution (Circa Sep 2008) State Response to Supreme Court Ruling in 2005 More States To Permit Direct Shipping Made it hard to order Discrimination against Big, Out-of-State Wineries (from West Coast) http://www.freethegrapes.org New Players: Amazon.com; WSJ; NYT www.wsjwine.com Efforts to Knock Down Shipping Restrictions Mixed Success Indiana case: State cannot bar shipments by out-of-state wineries to retailers. 4. Learning points: Antitrust and Consumer Welfare; (Slow) Channel Evolution

  10. How H-P Reclaimed Its PC Lead Over Dell • Hiring Todd Bradley from PalmOne • “HP is fighting on the wrong battlefield” • Shift of Channel Focus (ex: Store-exclusive notebook) III. Migration of PC demand: Desktops  Notebooks (different buying/using behavior) IV. H-P needed to convince shoppers that retail stores were the better channel choice  Shift of H-P PC Positioning: Product Focus  User Focus (“The Computer is Personal Again”) V. Promotion Shift: More Pull StrategyMore Push Strategy

  11. Two Channel Promotional Strategies** Pull Strategy Push Strategy Manufacturer Manufacturer 1* 1 3 Channel members Channel members 3 2 2 Final users (consumer or industrial) Final users (consumer or industrial) *Numbers indicate sequence of flows Promotion flow Negotiation flow Product flow

  12. Samsung’s challenge stumbles (WSJ) Major Players in Mobile Phone Market Hardware: Samsung and Apple Software and Services: Apple and Google Samsung Phone’s Platform: Android Samsung’s Response: Develop Own OS!  Tizen Track Record of Tizen so far? Nature of Platform-based business: Two-sided market Device (customers)  Developers Two Questions What would happen to Tizen? What should Samsung do?

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