ESSAY BUY CHOCOLATE ONLINE? TRY GODIVA. COM THE BUSINESS OPPORTUNITY The demand for high-quality chocolate has been increasing rapidly since the early 1990s. Several local and global companies are competing in this market. Godiva Chocolatier is well known international company based in New York whose stores can be found in hundreds of malls worldwide. The company was looking for ways to increase its sales, and after rejecting the use of a CD-ROM catalog, it had the courage to try online sales as early as 1994. The company was a pioneering click-and-mortar e-business that exploited an opportunity years before its competitors.
THE PROJECT Teaming with Fry Multimedia (an e-commerce pioneer), Godiva. com was created as a division of Godiva Chocolatier. The objective was to sell online both to individuals and to businesses. Since its online beginnings in 1994, the godiva. com story parallels the dynamic growth of e-commerce. Godiva. com went through difficult time-testing e-commerce technologies as they appeared; failing at times, but maintaining its commitment to online selling; and, finally, becoming the fastest-growing division of Godiva, outpacing projections. Godiva. com embodies a true success story.
Here we present some of the milestones encountered. The major driving factors in 1994 were internet user groups of chocolate lovers, who were talking about Godiva and to whom the company hoped to sell its product online. Like other pioneers, Godiva had to build its web site from scratch without EC-building tools. A partnership was made with Chocolatier Magazine, allowing Godiva. com to showcase articles and recipes from the magazine on its site in exchange for providing an online magazine subscription form for e-shoppers. The recognition of the importance of relevant content was correct, as was the need for fresh content.
The delivery of games and puzzles, which was considered necessary to attract people to EC sites, was found to be a failure. People were coming to learn about chocolate and Godiva and to buy – not to play games. Another concept that failed was the attempt to make the website look like the physical store. It was found that different marketing channels should look different from one another. Godiva. com is a user-friendly place to shop. Its major features include electronic catalogs, some of which are constructed for special occasions (e. g.
Mother’s day and Father’s day); a store locator (how to find nearest physical store and events at stores close to you); a shopping cart to make it easy to collect items to buy; a gift selector and a gift finder; custom photographs of the products; a search engine by product, price and other criteria; instructions on how to shop online (take a tour); a chocolate guide that’s shows you exactly what is inside each box; a place to click for live assistance or for a paper catalog; and the ability to create an address list for shipping gifts to friends or employees.
The site also features “My Account”, a personalized place where customers can access their order history, account, order status, and so on; general content about chocolate (and recipes); and tools for making shipping and payment arrangements. Godiva. com sells both to individuals and to corporations. For corporations, incentive programs are offered, including address lists of employees or customers to whom the chocolate is to be sent – an example of the B2B2C EC Model. Godiva. com continues to add features to stay ahead of the competition.
The site is now accessible using wireless technologies. For example, the store locator is available to wireless phone users, and Palm Pilot users can download mailing lists. THE RESULT Godiva. com’s online sales have been growing at a double-digit rate every year, outpacing the company’s :old economy” divisions as well as the online stores of competitors. Sources: Electronic Commerce: A Managerial Perspective 2008, Efraim Turban et all 1. | From the case study, summarize why Godiva decide to sell online? | | | | | (2 marks)| | | | 2. | The framework of E-Commerce describes overall content of an E-Commerce including its support services and infrastructure. List the any THREE(3) support services of EC with at least ONE(1) examples of it found in the case study. | | | | | (6 marks)| | | | | 3. | List the E-Commerce drivers in this case. | | | | | (2 marks)| | | | | 4. | Godiva. com also features “My Account”, a personalized place for customers. How the sites keep track of the specific browsing and buying behavior of each consumer? | | | | (1 mark)| | | | | 5. | Identify the M-Commerce model in this case. | | | | | (1 mark)| | | | | 6. | Describe B2B2C E-Commerce model at Godiva. | | | | | (3 marks)| | | | | 7. | “The company was a pioneering click-and-mortar e-business that exploited an opportunity years before its competitors. ”From that statement, describe what is click-and-mortar organizations and list and briefly explain another TWO(2) type of E-Commerce organization. | | | | | (5 marks)| | | | | | | | | (TOTAL: 20 MARKS)|