Analysis of Dabs.com and Microwarehouse.co.uk.

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E-business Assignment

----- Analysis of Dabs.com and

Microwarehouse.co.uk

Introduction

Since it is born, internet is doomed to change the whole world. Almost everything will be changed at home, in school, at work, in the government ---- even in our leisure activities. One of the most significant changes is “in the manner business operates especially in how to manage the market place and commerce”. (Turban, Efraim and Lee, Jae and king, David and Chung, H. Michael (2000), Electronic Commerce: A managerial Perspective, Prentice-Hall, Inc., New jersey, P,xxvii) The revolution that internet and web technology bring out a myriad of opportunities as well as risks. Amazon seized such an opportunity, and found first online bookstore in 1994. After that, more and more online retailer founded. PC Product is also suitable for the online selling. Many IT retailers started their online selling by establishing their own websites. Some of them succeed, some of them failed. This essay aims to take dabs.com and microwarehouse.co.uk as examples to analyse their strategies. First is about the analysis of dabs.com key factors for success and its values to the end users. Second is the analysis of microwarehouse.co.uk key factors for success and its values to the end users. Third is to compare these two website in 7Cs(), price, delivery, security. Four is about some my experience as a online shopper and what are online customers most concerned with.

Analysis of Dabs.com

 Background

Dabs.com is originally established in 1990 as Dabs Direct, a traditional mail order computer dealer, Dabs has changed significantly during recent years, successfully applying digital technology and rapidly moving with the trend of “e-tailing (selling products over the Internet from our web site)”.

Dabs.com is now arguably one of the UK’s finest dot com success stories, having grown significantly over the last three years to become the number 1 online retailer in IT sector.

 Market and products

Dabs.com is the UK's leading internet retailer of IT and technology products, offering around 34,000 lines from the world's leading manufacturers to over half a million online customers across the UK.

It mainly focuses on the domestic market in the UK. Dabs.com almost offers all the IT related products from a single component or an entire office-computing suite. Its products include computers, entertainment, monitors, networking, office supplies, peripherals, printers, storage, and software. They also provide the internet connection service and digital printing service.

 The key success factors

Build the good image and brand awareness

Dabs.com try to build the image of No.1 online IT products retailer in the UK in the customers’ mind. Dabs.com have been in business since April 1987, and has about 15 years experience of selling IT products until now, which is longer than over 90% of computer retailers. Dabs.com proves its stable and profitable business to the customer by publishing its financial statement on its website. Furthermore, dabs.com have support ChildLine since early 2000 (http://www.dabs.com/childline/childline.asp). These charity activities implant the good image in the customer’s mind.  In order to improve its brand awareness, dabs.com establishes the sponsorship with the leading company or special event. Dabs.com, for instance, are Official Online Sponsors of  Industries Limited, the British hopefuls in the "X-Prize" race to launch the first commercial passenger rocket into space. () dabs.com is also the Official IT and Technology Supplier of windjet, the British team with a mission to break the World Speed Records for land, ice and water using wind power alone (  ). These sponsorships can greatly improve dabs.com brand awareness.

Good partnership with the suppliers

In this market, supply chain management is one of the success factors. The most important issue could be “about delivering value to the customer----what they want, when and where they want it, and at the lowest possible cost. Companies need rapid, cost-effective, flawlessly executed demand fulfillment in order to support this new value proposition.” (E-business 2.0 P.273) The retailer could be the hub between the manufacturer and the customers, and must pay much attention to their relationships with manufacturers. As an online retailer of IT products, dabs.com builds strong partnership with many famous IT manufacturers such as HP, Compaq, and Toshiba, and also is an authorized reseller for all the leading IT manufacturers such as Epson, Creative and Microsoft. As the partners of dabs.com, these manufacturers could supply their products at the favored prices, and ensure the availability of the products. Moreover, the reputation of these top IT manufacturers can also strengthen dabs.com’s.

Provision of the huge range of products with competitive prices

As “a one-stop source for all IT related hardware and software” (http://www.dooyoo.co.uk/shopping/online_shops/dabs_com_1/_review/300080/), Dabs.com really offers the huge range of products. Its products almost include all the IT products from personal to professional use, and from family to business needs. Customers of IT and technology products have vast varieties of needs for different products, such as hardware, software, networking products, electronics products and so on. The vast range of products ensures dabs.com to meet the needs of different customers. Besides the wide range of products, dabs.com also keep its product at the reasonable stock level. For same kind of the products, some types are available now, some are available in 1-3 days, some in one week, and others are available upon order. This can effectively control the cost.

Rich user interface

“The online concept of user interface, or UI, is similar to the offline concept of store layout.” (Rayport, Jeffrey f. and Jaworski, Bernard j. 2002, P.70) A well-thought user interface is crucial to successful web selling. Dabs.com website designs is a good example for the “richness”. Although the WebPages contain very much information, the layout of the website is quite clear and reasonable, which is easy for customers to navigate, and to find out the products or information they need at dabs.com. dabs.com intends to arrange the special offers, PC offers, peripherals offers,  component offers, and software offers in the eye-catching place in its home page, which could ensure the online customer shoppers see what dabs.com want them to. The user interface of dabs.com could reflect the theme of the store represented, No.1 online retailer of IT and technology products in the UK. It applies the many technology in the website design, such as text, graphics, banner, audios and videos. Dabs.tv, For instance, is the video showcase channel of dabs.com. Customers can see what they are buying online in action. They can watch video demonstrations of the hottest products in the dabs.com. customers could get more direct and vivid impression from such video demonstration, which is very useful to the online shopping.

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Dabs.com Home Page

(Derived from: http://www.dabs.com/home.asp)

Pursuit of Diversification

1. Dabs.com pursue the diversification strategies not only in the products or service but also on the business model. Besides selling the IT products, dabs also offers the internet connection at dabs.net. That's a range of superb communications packages at really competitive prices, all of which can be purchased and organised completely online. There are three alternatives: broadband internet access, ADSL, and dial access. At dabsxpose.com, dabs offer the digital printing service. Customers just need to email the selected images and dabsxpose will professionally printed and delivered right to the door.

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