You are head of IT for a chain of department stores called ManyGoods. ManyGoods management has decided to take head-on the competition from online vendors. They are rolling out a new business strategy they are calling BrickMatch, which is to match any online offer in their stores. This new business strategy aims to leverage the advantage of touch-and-feel goods and immediate possession by customers. Here are some characteristics of the ManyGoods chain.
1. A competitor to Target and Walmart
2. 80 stores
3. thousands of employees
4. anticipates growing
5. consoles throughout the store with Internet access
6. partnering with specialty stores, providing them space – e.g., bookstores
7. free home delivery of out-of-stock items
8. loyalty program for frequent buyers
9. national campaign advertising BrickMatch
10. in-store, limited time specials
11. preparation for loss-leader response (i.e., online vendors likely to respond by using deep pockets to sell attractive items at a loss)
Where feasible and relevant, account for and emphasize these characteristics in your responses, and state any additional assumptions about ManyGoods and BrickMatch that you make.
Explain whether and how ManyGoods can effectively use outsourcing or offshoring to support their new BrickMatch business strategy. Discuss both business and IT aspects but emphasize IT aspects.
