IIBMS MIB CASE STUDY SOLUTIONS – Autozip sells accessories for cars through a chain of stores on the West Coast. The company started a catalog sales division 4 years ago that now accounts for 25 percent of sales.

Autozip sells accessories for cars through a chain of stores on the West Coast. The company started a catalog sales division 4 years ago that now accounts for 25 percent of sales.
Autozip sells accessories for cars through a chain of stores on the West Coast. The company started a catalog sales division 4 years ago that now accounts for 25 percent of sales.

 

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General Management

 
MANAGEMENT PROBLEM 10
Autozip sells accessories for cars through a chain of stores on the West Coast. The company started a catalog sales division 4 years ago that now accounts for 25 percent of sales. Customers like the convenience of calling a toll-free number and having the parts they order delivered via USP or an overnight carrier such as Federal Express.
            The president of Autozip realizes that the firm needs to have a presence on the Internet. He is trying to decide whether to accept orders on the Internet. He is trying so decide whether to accept orders on the Web, and if so, how. He is caught between two positions offered by his staff. The marketing vice president advocates taking orders on the Web. Her reasoning is: What have we got to lose? We have everything to gain; it’s another market channel and our competitors are already there or will be soon. We save money because customers act as their own order entry personnel.
            The controller disagrees. His reasoning is: Any advantage we gain will be temporary; it is so easy to set up a system to order on the Web that everyone will take Web orders and we won’t gain a sustainable advantage.
            The president has to make a decision. First, should Autozip accept orders on the Web, and second, if so, how? Should it go to a firm that hosts Web marketplaces, buy software and set up its own site, or develop its own software?
 
Autozip sells accessories for cars through a chain of stores on the West Coast. The company started a catalog sales division 4 years ago that now accounts for 25 percent of sales.

 

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