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Wednesday, January 28, 2009

An Example of E-Commerce Success and Its Causes


NIKE

E-commerce – “a chance for consumers to contribute to the learning of how to better serve their needs."

The arrival of Internet has fundamentally changed the way people communicate and interact. Interpersonal communication has been replaced by a huge computerized network. Under this revolution, information can be exchanged instantly with the ease of a few key strokes.

In today’s business world, most of the companies rushed to develop their e-commerce strategies in order to maintain their competitive edge. Nike, one of the largest brand-name sports apparel company around the world, has made its right choice to conduct business in an e-commerce environment.

Previously, Nike.com has launched primarily to provide information to its consumers without the existence of e-commerce capabilities. Few years later, Nike officially stepped into e-commerce on February 11, 1999, when consumers can buy products on Nike.com.

The purpose of the move is to correspond Nike with the original purpose of Internet, exchange information. Therefore, Nike.com is not only a product-selling site, but also a communication and marketing effort. The provision of user friendly functionalities such as ease of purchase, speed, and navigation serves the rights for Nike to capture the growing number of online shoppers, who are a tempting source of untapped revenue for Nike under the formerly business strategy.

--Potential successful reasons and its causes of Nike--

1. Internet. Technological advancement offers to be a useful tool for Nike in increasing sales and reducing marketing cost. The existence of current website absolutely provided Nike with an intangible asset such as market research and consumer buying behaviors. Data collected from consumers enables the firm to analyze and monitor the buying behaviors of its consumers and thus produces innovative designs and improves its research capabilities.

2. Web appearance and user friendly functionalities. Nike has placed a great importance in developing their branding strategies on the net through web appearance and user friendly functionalities. This strategy becomes a vital tool in maximizing its market share and it is the most favorable web site with both high web site appearance and user friendly functionalities.

3. Secured website. Nike has attained a considerable competitive advantage due to its reputation for quality and innovation. Nike.com's value proposition is an easy to use web site that is highly interactive, secure as well as its reputation and brand image of their product.

4. Bricks and clicks. The adoption of bricks and clicks business model helps Nike to increase
sales, reduce cost, increase market research, applying competitive advantage, improving
customer service, promoting new products, and progress in addressing user concerns.

5. Customization. Currently, Nike’s store enables online consumers to design key elements of the shoes according to their preference. This program is the first time a company has offered such mass customization of footwear and it arose a lot of attention from its supporters.

In conclusion, Nike is one of the successful companies which leading sports apparel in dealing with e-commerce business model. As such, the firm has potentially secured greater amount of revenues from those online shoppers. With the ease of navigation and exclusion of sales tax in western countries, many users might prefer to purchase through internet rather than visit physical store. Therefore, the arising of e-commerce model aids Nike in gaining market shares and interests in today’s business environment.


~ References ~

posted by mei_huei at

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