Established retailers are facing growing competitive pressure from pure internet startups that are leveraging eCommerce marketplaces hosted by Amazon, Facebook, Alibaba, eBay, etc. Some traditional retailers, such as Best Buy, Macy’s, and Walmart, have created an effective competitive response to these pure eCommerce startups by adapting their customer experience and effectively integrating their physical infrastructure with their online presence and making online shopping easier than ever for consumers. GlobePort, a nationwide sporting goods retailer with 200+ locations, $1+ billion in annual revenues, and $100+ million in profits, recognized this trend and established an eCommerce site using an outsourced IT provider. Despite having the flexibility of their brick-and-mortar stores for in-person sales/service and the internet site for eCommerce sales, GlobePort is facing profitability issues from their internet sales channel as a result of poor support from their IT provider. Their problems are further compounded by incomplete customer information and the lack of strategic integration between their physical and internet channels. Recently, GlobePort executives have come to recognize that their internet sales are lagging industry norms and have begun to take steps to improve their eCommerce systems. However, any systems changes would require additional in-house IT staff with new skillsets and necessitate close teamwork throughout their widespread organization. More importantly, a technology transformation project would lead to new and redesigned customer-facing and operational business processes and the collection and integration of customer data/knowledge across their traditional organizational silos.
"GlobePort Faces Challenges in its Technology Transformation,"
Journal of Information Systems Education: Vol. 32
Available at: https://aisel.aisnet.org/jise/vol32/iss2/3
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