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.J&R s marketers can enables J&R to deepen its Web content with videos,control the services from Loyalty Lab with simple including hundreds of clips that feature staff membersgraphical online tools using any standard Web browser.giving tutorials on specific products.The videos bring aGoldstein points to additional benefits for J&R from the personalization to the online shopping experience thatprogram in form of saving what he calls the Google normally would be available only in a bricks-and-mortartax. This is the 20 to 30 percent charge that J&R pays to store.J&R even films the videos in its actual stores.search sites when visitors are directed to J&R from The new e-commerce platform will also enhance theanother site, a fee that J&R avoids when shoppers visit capabilities of software that J&R was already using.JR.com directly.For example, under the old system, J&R had to run itsJ&R selected Blue Martini as its new e-commerce Endeca Web site search software separately from theplatform because Blue Martini functions well with InterWorld site.The Endeca software helps customersJ&R s ERP software from a technical perspective.find, analyze, and determine relevancy in search results,The two systems are able to exchange data easily.Blue but these features could not be fully utilized in thatMartini provides a better opportunity to share the environment.On the new site, J&R can integrate Endecastrengths of J&R s bricks-and-mortar channels online.with its PowerReviews customer reviews to helpBy doing so, the company hopes to achieve a greater customers refine and sort products.Endeca also featurescompetitive advantage over its chain store rivals.Blue merchandising functionality that J&R will now be ableMartini has to showcase online the standout features of a to deploy for tracking the activities of customers acrossvisit to a J&R Electronics store.Only then can the JR.com site.customers throughout the country respond to the The new JR.com launched in March 2007 with a hostbusiness with the same sense of loyalty as those who of new customer conveniences.If a customer selects aphysically visit the stores in lower Manhattan.product that is out of stock, the site is prepared with aJ&R has plenty of advantages, or differentiators, to list of similar products.The site also has real-timeshowcase.Its prices are very competitive, yet it integration with store inventory, so onsite purchases aremaintains a vast inventory that rarely leaves customers reflected in the availability of products online.J&R hasdisappointed.J&R also has a reputation for being at the also made the checkout process more efficient soleading edge of new technology.The company has a shoppers arrive at final price more quickly.The shippingpenchant for being the first retailer to sell new products section has been restructured to improve the accuracy ofor the latest versions of already popular products.delivery dates and shipping fees.Furthermore, J&R is known to have a good sense for Jason Friedman recognizes that, despite the increasedtechnology trends, such as the transition from VHS to functionality provided by Blue Martini, his company isDVD and the rising popularity of Apple products.J&R still limited by having physical stores located solely inoften caters to those trends before other stores are New York City.He notes that where chain stores canprepared to do so.Aside from good prices, perhaps the offer customers the option of ordering merchandiseelement of J&R that appeals to customers most is its online and picking it up that day in person at the nearestsales staff.Customers who enter J&R stores know that store, J&R can only make that option available tothe workers they encounter will be well informed and customers in the New York City area.However, he feelsadept at explaining the features and specifications of that emphasizing e-commerce carries great potential foreven the newest and most high-tech products.the business and represents the company s future. Chapter 9: E-commerce: Digital Markets, Digital Goods 329Maris Daugherty, a senior consultant with J.C.3.Can J&R keep up with the competition since it isWilliams Group, a global retail consultancy, believesmore or less a local brand competing with nation-that J&R should not expect too much too soon.She sayswide chains? How would you measure its success inthat there is space in the retail market for a niche entitykeeping up with the competition?like J&R, but success will likely come from a long-term4.Visit J&R s online store at JR.com.What featuresfocus rather than a short-term revolution.described in this case are you able to find on the site?How effective is the implementation of theseSources: Laton McCartney, Mid-Market Case: J&R Electronics Pumps Up thefeatures? Do they seem to be achieving the goals thatVolume, Baseline Magazine, March 13, 2007; J&R Electronics Taps Loyalty Lab sOn-Demand Suite for First Shopper Loyalty Program, Rtmilestones.com, accessedJ&R set for them?May 1, 2007; J&R Electronics Migrating to Blue Martini E-Commerce Platform, Internetretailer.com, November 8, 2006; Encyclopedia of Company Histories J&R 5.Compare JR.com to the Web sites of Circuit City orElectronics, Inc., Answers.com, accessed April 25, 2007; and Heather Retzlaff,Best Buy.Evaluate them in terms of product J&R Tests Online Loyalty Program, MultichannelMerchant.com, August 1, 2006.selection and availability, tools for providing productinformation and customer service, and ease of use.Case Study QuestionsWhich site would you use to purchase a computer or1.Analyze J&R Electronics using the competitiveMP3 player? Why?forces and value chain models.What is its business6.What do you think of the notion that J&R s new Webmodel and business strategy? How does it providesite and emphasis on e-commerce are not likely tovalue?result in a short-term windfall but should be part of a2.What is the role of the Internet in J&R s businesslong-term growth strategy? How does this conceptstrategy? Is it providing a solution to J&R sfit in with the company s strategy?problems? Why or why not?
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