Case 1

Group (B) Member :-

Name ID NumberAbdurrahman Ali Alghamdi

0907628

Ali Musaed Alghamdi 0908665Manssor Yousif Aharby 0910434Ibrahim Attiah Alzhrani 0908208

History --------------------------------------------- 3

Buy.com logo --------------------------------------------- 4

Information --------------------------------------------- 6

Awards --------------------------------------------- 7

Strategies ---------------------------------------------- 8

Economic implications ------------------------------ 8

Questions --------------------------------------------- 8

Index :

History Buy.com is one of the original online retailers in the United States. It began selling computers and electronics in 1997 , the company has since diversified its offerings to categories such as software, books, movies, music, games, toys, digital cameras, cellular phones, and magazines. Buy.com over the years has tried very hard to be like Amazon.com but clearly lags behind in the technology.

Buy.com logoThe Buy.com logo has undergone one major change over the years when in Jan 2000, it changed its logo to the simple Buy.com text. The original logo was a Big B enclosed in a C. Since the big change in 2000, the logo has undergone some minor changes especially in the area of the tag lines such as - Lowest Prices on Earth - It's All Good - The Internet Superstore

The image below shows the complete history of the buy.com logos

Information* Buy.com has the lowest prices on the Web

* The company is committed to being the price leader – even if this means losing money on every sale

* intelligent agents search competitors' sites to make sure Buy.com has the lowest prices on the Web

* Studies have shown that buy.com sells computer products 10 percent to 30 percent less than other competitors' sites.

* It sells about half its products directly and commerce businesses that use its online store.

Awards

A+ Rating Buy.com awarded A+ Rating by the Better Business Bureau (BBB).

Preferred Solution Provider Buy.com has been recommended as a Preferred Solution Provider by the retailers who have attended the eTail east and west coast conferences.

Best Use of Multichannel The Retail Email Blog names Buy.com's Tweet n Seek campaign Best Use of Multichannel for 2009

Hot 100 Internet Retailer's names Buy.com one of the Best Retail Web Sites for 2009

Best Companies to Work for Award OC Metro Business Magazine names Buy.com one of the Best Companies to Work For. J une 2008.

Best Place to Buy Consumer Electronics Buy.com is named one of the best places to buy consumer electronics in the "21st Annual Shopper's Choice Awards" Best Places to Buy".

Strategiesadvertisers will pay large amounts for their banners to be on Buy.com's site. Here are some strategies used by the company to support their plans :(a) The company purchases more than 2,000 domain names that start with ‘‘buy’’.(b) Buy.com offers 30,000 different products for sale or lease.(c) The profit margin is 0 percent to 2 percent. Relying on a slim margin to gain a market share is a risky strategy. However, the company expects to make money from ads on its site and from its ‘‘buy’’ stores.(d) The customized stores are online retail sites devoted to selling a particular company's product. There are brand names such as Buy Nokia.

The two interesting economic implications related to this case are :First of all, ifBuy.com

succeeds, we will have proof that it is possible to build a brand completely on price. Selection, customer service and user experience all matter, of course, but on the Web it is very simple for a consumer to experience these things on one site and close his or her transaction with the low-price leader.

Second, Buy.com's success could change the very way wholesalers and distributors conceptualize their businesses. Sure, extreme discounting by one reseller raises the eyebrows of a distributor's other customers.

What are the similarities and differences between buy.com and online stockbrokerswho charge minimal transaction fees ?

Similarities is that both are using the Internet to do business his work, and the difference lies in that the profit in the stockbrokers are not fixed and the risks are many and varied, while it is in the buy. Com fixed and specific risk and the percentage of low or non-existent.

Questions

what is the logica for creating a cust a customized "buy" site?why does a company such as Nokia needs buy.com ?

* Marketing more effective, more profits* Business information available to all* Carrying out sale* Access to international markets* Service the local market

Questions

In what way can Buy.com use a domain name such as www.10percentoffamazon.com to its advantage ?

By exploiting the name of Amazon. Com , and a 10% reduction of the Amazon. Com

Questions

Thank you for listening