Report Requirements:
Item 6:  Are you/how are you going to use IT to gain a competitive advantage?  

 

Since we are an e-commerce business, we can use a variety of IT to gain a competitive advantage by making the ordering process easy for customers, providing optimal customer service, and personalizing the services for each of our individual customers.  Therefore, our competitive advantage is a differentiation advantage:  Through IT, we will offer our customers unique services that provide benefits that our competitors do/can not.

a.  Business Online 

To host PackMyParty.com, we will use a free web hosting service. We chose geocities.com because of their convenient upload file manager and reliable services.  Having a business online is an advantage because we can conduct business any day at anytime to customers anywhere around the world.  Also, since we are a click-only business, we are better able to reduce prices.  With an Interorganizational System, we would have electronic communication between everybody in the process including retailer to supplier, supplier to shipping, shipping to receiving, receiving to retailer, and retailer to customer. Essentially, in doing so, we will be able to cut out down on manual processing costs and offer our consumers better prices. 

b.  Unique Services to Enhance Consumer Relationships 

When customers come to our site, they will have the option of just buying from our site as a one-time customer or signing up for a membership account.   

For all of our customers, we will use web technology to create a simple step-by-step process of ordering a party package.  The customers will be able to pick a theme from our menu then customize the package if they want to remove unnecessary items.  This is something that many other companies do not offer.  Then, the customer can proceed to our secure checkout to pay for the package(s) by credit card.  After the purchase, our customers will be given an order number that they can use to easily track where their package is and estimate when it should come in.   

To ensure that the shopping experience is as easy and uncomplicated as possible for our customers, we will have dedicated customer service before and after the purchase.  For first time customers, we will have an ordering tutorial to demonstrate the ordering process.  We will also have an option for customers to either email customer service or chat live with a customer service representative in case they have any specific problems with their orders.   

If for any reason a customer does not feel safe about giving us their personal information online, he/she may pay by sending a check or money order via snail mail to us.  Doing this enhances our customer's confidence in doing business with us, because it assures them that we will do whatever it takes to give the best possible service available anywhere.

For customers who choose to sign up for membership, we will have technology that provides a number of unique personalized services.  Some services that members will be provided are: 

E-vites:  Instead of using hard copy invitations, members will have the option of keeping an online address book of their guests and sending invitations via e-mail. 

Guest Tracking:  Guests will have the option of responding to their e-vites via email, and we will automatically keep track of which guests will be attending our customer’s party based on their responses.  Customers will also be able to manually add-in guests who choose to respond via other methods (i.e. phone, in person).   

Calendar:  Our customers will have an online personalized calendar in which they can enter special events such as upcoming birthdays and parties.  They will also have the option of getting e-mail or cell phone text notifications of their calendar events. 

Picture Page:  For each package order they make, our members will receive one picture page in which they can upload and share pictures from their parties. 

Using technology to create these personalized services for our customers will help to build customer loyalty, which can be a valuable competitive advantage. 

To offer the best products to our customers, we will also use database technology and web statistics to track items that are the most popular based on how many people buy certain packages and how many hits a products’ page gets.  We will then increase the supply of packages that are popular and feature them in specials on our site.  Products that are less popular will either be lessened in supply or discontinued. 

Besides using the database for overall statistics of popular packages, we can also use the customer information in our database to recommend certain products to individual customers with accounts.  Based on what they have purchased in the past or what events they have coming up in their calendars, we can send our members recommendations and specials that suit their preferences.

c.  Optimal Supply Management 

In relation to our inventory, our database will keep track of our customers’ orders, ensure that they are fulfilled, and automatically subtract from our inventory the items that were sent out.  This will ensure we can always provide our customer with the products they want and need.  When certain items start to become low on stock, our database should notify the inventory manager so that he/she can order more.  In the case that packages happen to become sold out, the database will automatically change the availability of the product on the website and notify our inventory manager, who will then remedy the situation as soon as possible.

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