Attempt all the problems.

Section-A

problem1) What factors the organization should consider for designing an e-retail plan?

problem2) “Customers’ privacy or trust is broken through security problems like credit cards being stolen or addresses sold to other companies.” Do you agree with the statement? Justify your answer.

problem3) If catalogues and website pages look the same, that is are two-dimensional images, yet web page could include other features

including music and changing graphics, why do many catalogue customers resist buying online.

problem4) What is e-retail modal and compare its strength and weakness with brick and mortar retail?

Section-B

Case Study

Blackstar was founded in February 1998 and operates form Belfast in Northern Ireland. It began by selling the comprehensive library of 50,000 video titles. With widespread consumer support for new DVD format that has built up over past two years, Blackstar logically moved into the DVD movies market and now also gets games console titles as well.

Blackstar has enjoyed newsworthy successes in its short history. It has managed to attract and retain customers through its commendable level of customer service. Typical high street video/DVD shops typically stock up to 3,000 titles, but Blackstar offers a much wider range with many otherwise-rare titles. This service has proved to be very popular and a key factor in the company’s success. Though, Blackstar, like most other e-retailers, has yet to achieve profitability. Blackstar was awarded Retail Online success of year at the BVA Awards 2000.

Case problems:

problem5)a) According to you what was the secret of Blackstar e-retail success.

b) Why Blackstar is still not able to achieve profitability? What strategy you would suggest to improve profitably?