Hal’s Hardware Essay Example
Hal’s Hardware Essay Example

Hal’s Hardware Essay Example

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  • Pages: 4 (1016 words)
  • Published: May 1, 2017
  • Type: Case Study
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Hal’s Hardware, Inc. Proposed Electronic Commerce SWOT Analysis Strengths

  • Ease of transactions
  • Make products more accessible to consumers who are not located near an HHI store.
  • Make products more visible to consumers and enable HHI to do online advertising.

The proposed e-commerce website may make it easier for customers to buy products online. Since Hal intends on adding an online shopping feature to his existing website, this may be more convenient for many of his regular customers. Customers in rural areas will no longer have to drive far to get to a physical store.

A website will also widen Hal’s customer base. Even though his physical stores are located in 3 states, anyone in the U. S. could potentially purchase products from Hal’s. A website will allow online advertising, too. Hal could buy sidebar ads on various websites which can generate more revenue

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for the business.

Weaknesses

  • Cost of configuring the online shopping component to the existing website.
  • Maintenance costs and/or hosting costs. The main weaknesses of an e-commerce site are the costs to create and maintain it.

Hal will have to consider the costs of hiring, training and paying personnel to design the website, write or customize code or software, create the content and maintain the site. The total cost to own a website shouldn’t be more than the revenue an online shopping website generates. In Hal’s case the costs may be far less because he has a basic website already in place.

Opportunities

  • Partnership with other websites for additional advertising.
  • Expansion of services offered.
  • Increase in sales due to being able to reach more customers

As mentioned in the Strengths section, Hal could buy sidebar or text ads on

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other websites with large traffic in order to generate more revenue or increase traffic to his own website. He could highlight products on sale with a weekly “online circular. ” Hal can also have a link to the classes offered in stores, such as the gardening or home improvement workshops. For those who don’t live near a store to participate, he can upload helpful videos or webinars of the classes so those at home can learn and acquire ideas.

Online training courses (webinars) are very popular and I think this would be quite successful. Hal can also have an online bulletin similar to the bulletin board in store. This bulletin could be similar to an online forum or message board where contractors or builders can place job notices, etc.

Threats

  • The website could lessen interaction with customers or diminish existing relationships
  • Online threats like hackers or viruses.
  • Competition from other Big Box companies.

The case study states that HHI employees focus much of their time on improving customer experience when they visit the stores.

This is a very important strength of HHI that many of the bigger competitors are not as willing or may not be able to do. If an online shopping feature is added, customers may not have a need to visit a store and experience the excellent customer service at HHI. Online shopping doesn’t offer much personal interaction. Websites are susceptible to hackers and valuable/sensitive customer information can be stolen or compromised which can lead to disappointed or angry customers. I remember when TJMaxx was hacked and many customers’ credit card information was stolen.

Online competition is quite fierce. HHI would have to invest in marketing strategies

that will keep it competitive in the online hardware industry.

Recommendations

I recommend that Hal creates a partnership with advertising/marketing websites to promote the site and increase visibility. There should be exceptions as to what products can be ordered online. For example, online shopping may be limited only to smaller items so that customers will still have a reason to visit the store when buying larger items. Like the case states, exclude large items like wheelbarrows and live plants.

The website should include a help section, tutorial section, videos section, etc. where customers can browse for any power tool demonstrations, find help in tool operation, or training courses. Hal should have an online calendar of events that lists workshops and classes or demonstrations in physical store locations. The site should include an online consultation feature where customers can seek for help regarding the products sold at HHI. An online bulletin can be put up where HHI, customers, suppliers can post announcements, ads or notices about tools or services they offer.

Users should be allowed to subscribe to this bulletin so that they can receive email updates whenever news is posted. Customers should be encouraged to create accounts on the website to access more features. This is also to reduce the risk of attackers abusing the website and to track customer transactions or buying habits (for HHI’s business use only – not to be sold to others). To prevent the loss of the relationship with customers, HHI should still encourage the customers to visit the stores occasionally or arrange gatherings where customers can consult with the personnel for matters that cannot be discussed online.

Or, HHI can encourage customers to come

to the stores for the workshops and classes to promote personal interaction. Careful consideration should be made in terms of the how the website is developed. Requirements should be made clear in the beginning to prevent repetitive development because this can be very costly. The number of people in charge of maintaining the website should be carefully considered, as well, because assigning personnel to the website will require training.

A good way to come up with good marketing/advertising strategies is to brainstorm with the staff about ways to market the site. This also stimulates involvement and cooperation. Customer surveys about the website might be helpful. They could be attached to the check-out function so that customers can rate their experience. HHI could add a rate and review feature so that customers can post product reviews and rankings, as well. This may help customers feel satisfied with their purchases and could reduce the likelihood of product returns.

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