Olympic Winter Games 2010 Site

The Olympic Winter Games 2010 will be here soon. Since I love the Olympics, I discovered its site, promoting every sport, ticket sale and merchandise. It will be held in Vancouver, Canada and feature 20 sports. Its website can be found simply by typing in “Olympic Winter Games.” It is the first in the page ranks, so clearly it has been indexed with Google. The homepage is set on a white background with an image of an athlete snowmobiling. In the middle of the screen many different images related to the games flash through. Its tool bar allows visitors to shop, read about the news and discover things about the athletes. Visitors can also subscribe to the site and get the latest information on the games. Another interesting feature is the “announcement” section. This can include anything from athlete news to the torch relay. The bottom of the page has links to “other useful websites.” This is obvious that other sites are using the Winter Games popularity to drive people to other sites as well. When clicking on the venues and schedules both show up and are easily navigated.

            The page allows people to apply to be a torchbearer. It also gives all the information, right on the site. Another important feature is the accessibility page. It tells about the accommodations provided for people with various needs.  The site offers many different things, but it is extremely easy to utilize. 

Zappos Pricing Strategies

Zappos uses fixed pricing. This means everyone pays the same price and must take it or leave it. A pair of women’s sneakers or dress shoes is the same price for a woman in Massachusetts as it is for a woman in Colorado. There is no room for bidding or negotiation. The price remains the same. The price level also remains the same for all wholesalers, manufacturers and businesses, as long as they buy the required amount. This means that even savings from buying a specific amount is the same for everyone. Zappos also uses promotional pricing. This strategy allows them to offer free shipping and free returns. It encourages many consumers to buy without worrying about the consequences of being unsatisfied. Customers are often happy with this incentive and become repeat customers.

Zappos has many different shoes all in one place with free shipping and free returns. When looking at the prices, it is easy to tell why. For example, on the Uggs Australia website, a pair of classic short Uggs sell for $140.00. On Zappos, the same Uggs sell for $144.00. This shows that Zappos might add in the shipping with the price of the sale, and then tell consumers that there is free shipping. The word “free” can often blind people. Another type of shoe offered on Zappos is a pump from the Donald J. Pilner line. It is marked in red with the word “SALE.” It may actually be on “sale” because this shoe is an older model and not even featured on its designer’s web site. It can be seen though that consumers love sales. When a product goes out of style or season, it is immediately marked in red with the word “sale.” This winter, Zappos offered a Salomon boot for $165.00 with free shipping and returns. The same boot was found in stores for $155.00. The extra $10 may cover the cost of shipping and returns for Zappos, but offers the customer the ease and convenience of ordering online.

Zappos pricing strategy has done nothing but increase loyalty with customers. The free shipping and free returns have created a loyal relationship with 65% of their customers. Zappos revenue has doubled every year since 1999. In 2006, they reached $600 million in revenue. I believe that the hassle free approach of free shipping has been a large part of its success. Although in some cases the price of the shipping is already figured into the price of the shoe, people are not bothered by adding in the extra amount or calculating how much they would spend sending it back. Zappos approach leaves less to the consumer and focuses on satisfying their needs. The less the hassle, the more the sales. There is also less risk when shopping on Zappos. Consumers know that they can send things back, free of charge. There is no reason to stress or debate about buying. Zappos has taken the weight off of consumers’ shoulders, and for that they have been rewarded.

Zappos

The shoe industry is a $3 billion dollar business. Zappos holds one fifth of the market, ahead of all other competition. Zappos is one of the first online only shoe stores that provides free shipping and return policy. Founded in 1999, the company sells shoes with free overnight shipping. If a return is necessary, customers are able to print off prepaid postage from its website and send back the shoe for a different style or size. 

Zappos uses a merchant web business model. It virtually displays shoes for customers to view at different angles. It carries shoes from many different brands and allows people to find what they need from the comfort of their home. Once a customer gets onto the website, he or she is able to type in the kind of shoe that they want. Different options arise, and they can scroll down to find what they are looking for. Customers may also use the

 sorting option, which separates shoes into different categories such as boots, sneakers and dress shoes. It also sorts by brand or upcoming events such as the Boston Marathon. There is also a women, men and children section that also link to a clearance section. This allows customers to quickly find what they are looking for and do not have to be bothered by searching store to store. After the purchase is made, the shoe is sent straight to the customer’s door the next day. If they are unsatisfied, they may send it back free of charge. Zappos also has 24-hour 365 day a year customer service for those who need questions answered. Live online helpers that speak different languages are always available. It uses these tactics to create a competitive advantage of customer loyalty in the online shoe market.

The measure of revenue, the number of customers and the amount of repeat customers are a few ways to measure the success of Zappos. Since 1999, Zappos has doubled its revenue every year. Although free shipping can get expensive, in 2006 it hit $600 million in revenue. Also, by 2006, Zappos had 4 million customers. Using its approach to obtain customer loyalty, 65% of them were repeat customers. This is a great way to measure the success since Zappos uses much of its funds to give the customer a pleasurable experience. Another metric that could be used may be the amount of people who have clicked through the website and stayed 

on it for a reasonable amount of time. It displays people’s interest in the web site. Random customer comments and surveys are also used to measure its success. These types of primary data can be superb tools to attend to customers’ needs and wants. Many times something that one customer asks for, may be something that others would also enjoy. It is important to meet these needs because Zappos is really focused on the customer experience.

Zappos pure play merchant business model has proved to be a success. Its measurement tools have only taught the company the best way of doing things and made them more money. It remains number one in the online shoe industry.

Case #2: iPhone "Jailbreaking"

Recently, a case of copyright infringement has been brought up by Apple’s product, the iPhone. The phone culminates numerous capabilities and has broke barriers to form a new type of technology. Hundreds of thousands of people who own the phone have been breaking the code to access software that the iTunes store does not provide. It also allows people who are not on the AT&T network, Apple’s cellular phone affiliate, to use the iPhone. This is referred to as “jailbreaking.” Owners of the phone who do not break the code are only able to access software from the iTunes store and must be a part of the AT&T network. This may seem as if users are “in jail,” however they are fully protected from the “bugs” of other software. The Electronic Frontier Foundation (E.F.F.) filed at the Copyright Office, stating that the iPhone should not program the phones in a way that keeps users from installing different software (Lohmann). The Digital Millenium Copyright Act keeps people from defeating technical protections for copyrighted materials (Hansell). Every three years, things can be exempt. Apple fired back at the E.F.F. stating that the copyright law has been infringed and they deserve an exemption from the ban.

In a world of digital sharing, movie and music downloads and computer hackers, it can be hard to define copyright infringement. Digital property is protected in three ways, patent, copyright and trademark. The Copyright Act of 1976 gives the owner exclusive rights to reproduction, to prepare derivative works, to perform the work publicly and to distribute the material. The material becomes the property of the author as soon as it is finished. When applying this law to the Apple case, it can be seen that the company created software that could only be used exclusively on their phones. When Apple’s software is broken through by users and another kind of software is downloaded, it is a display of copyright infringement.
Apple argues that the entire case is infringing on its copyright. Its argument rests on the case that its reputation could be tarnished and potential customers could be lost. This could happen if a person who has “jailbroken” from the Apple software, began to experience problems with the “bugs” of the new software. These security flaws, that are not experience with Apple’s software, will become prevalent and disuay people from buying an iPhone. This could hurt Apple’s trusted product and of course profit. Under the Digital Millenium Copyright Act, many things can be seen as infringement when pertaining to software. The iphone is being changed and used in a way it should not. Through Apple’s eyes, breaking the code and using different software and a different network undermines it. AT&T and Apple are losing out on customers because people are using their creation and slightly altering it for their own good. Apple’s agreement at the beginning of use can be made to protect it from many things and allow it to sue those who are not abiding by it. This includes copyright infringement. If they “jailbreak,” Apple could be entitled to actual damages and the person may face criminal charges. “It should be clear that the iPhone ecosystem Apple has built is good for developers, good for iPhone users, good for Apple, and good for the policies underlying the copyright laws to encourage the creation of works of authorship” (Hansell).

When arguing against Apple, it can be questioned whether there is copyright infringement or if it is demanding protection of its profits and revenue. From this standpoint, a person who has already paid for the phone should be able to alter it in any way he or she wishes. Using a phone that can only run sufficiently on its own software could bring up some very questionable issues. A point that reveals great concern for consumers is if this worked in the same way for different products in an array of markets. It seems absurd in a sense that a person can buy the phone but only use one type of software. One blogger put it best, “Automakers could, conceivably create "software" in their cars that only lets you fill up at their approved stations. Breaking that "software" to allow for "interoperability" would then be seen as infringement. Hopefully the Copyright Office sees through this claim and makes it official that jailbreaking is perfectly legal” (Mike Masnick).

Either side can be taken in this case. It is hard for me to agree with either one. I can see how Apple is upset with people breaking the codes and using different software and cellular networks. It can give it an image that they do not necessarily want and can also damage its revenue. As a member of Apple, it would feel like something was being stolen from me, and I am not able to reap the benefits of my product. It can also be frustrating to Apple when the software that users are downloading is ruining the product with “bugs” and viruses. If they just utilized the software given to them, there would be no problems. If I were a member of the Apple team, I would feel as if our partner AT&T was also losing out. People who reprogram the phone to different networks are essentially taking business away from AT&T. The joint venture is now broken and unbeneficial for the affiliate.

From the standpoint of a person who is “jailbreaking,” it can seem as if the entire copyright infringement issue is ridiculous. After paying for the phone, I could feel as if I had already paid my dues to Apple. Apple is not legitimately concerned if I get viruses or if have security problems with my phone. Its major concern is if it and its affiliate AT&T are getting paid. Through the eyes of the consumer, it seems as if its marketing department also has concerns whether or not bad word-of-mouth is being spread because of its poor security from the alien software that was downloaded. It is hard to imagine that if I did “jailbreak,” I could be punished with fines and possibly up to five years in jail. This could happen after I paid my fee to Apple for the phone legally and was just trying to make the iPhone fit my needs.

This case is still going on and will have hearings in the upcoming months. A decision is expected to be made this fall. Both sides have a good argument, but it will be interesting to see which wins the case. It is funny to think whether the Copyright Law of 1976 had ever planned for something like this.


Sources:
Hansell, Saul. “Could you go to jail for jailbreaking your iPhone?” New York Times. 13 Feb. 2009.
Masnick, Mike. “Apple claims jailbreaking the iphone is copyright infringement.” 13 Feb. 2009.
Lohmann, Fred von. “Apple says iPhone jailbreaking is illegal.” Electronic Frontier Foundation. 12 Feb. 2009.

Case #1: Mass Customization

NikeID and Puma Mongolian Shoe BBQ are two websites committed to meeting the needs of consumers through mass customization. Each website holds the technology for a customer to design his or her own shoe and then have it shipped to his or her door. Although both of their websites serve similar purposes, they can be viewed very differently.
NikeID is a branch off the ever-famous Nike sneakers. The website allows customers to select materials, choose colors and add a personalized ID. These customized shoes are available in numerous sizes and fits. “You design it. We build it.” is NikeID’s tagline that truly expresses the consumer’s ability to virtually build their “dream shoe.” Puma Mongolian Shoe BBQ has the same idea, but a slightly different approach. The website is based off the centuries old story of a Mongolian Army that hunted, cooked and feasted using their own swords and shields. This story helped Puma discover that every person has different tastes. That being so, they created a website dedicated to designing customized sneakers. The website uses the Mongolian Army theme for everything from the background screen photos to the fire burning logo.
NikeID and Puma Mongolian BBQ share many qualities in their efforts toward dominating mass customization. Both websites have black background screens that are filled with vibrant colors. NikeID displays colorful and eccentric sneakers on its opening page. Puma Mongolian BBQ fades image to image of the inside and outside of a restaurant and a happy chef. Puma uses their bbq theme throughout the shoe making process. NikeID uses “myLocker” to save previously designed shoes, while Puma uses a “doggie bag” as a cart for purchases. The two websites share the concept of themes, but Puma’s use of it in every aspect is more prevalent. Using Puma Mongolian BBQ can be more exciting at points because of the fun way they play off their theme. The chef, the table of ingredients and the pretend menu make the website entertaining. NikeID offers customers to buy shoes that they have not customized themselves. It also provides trainers for different types of athletics. Other shoes are also offered that have been designed by star athletes. Puma Mongolian BBQ site only allows the purchase of customer customized shoes.
A very important function of these websites is meeting the customers’ needs and wants. Both websites have a customer service option at the bottom of the page. NikeID’s is filled with directions on how to use the site, frequently asked questions, policies, order tracking and a telephone number for further assistance. Puma Mongolian BBQ has an area where customers can write their thoughts and it will be sent to Puma North America. Its purpose is to look like a suggestion card at a restaurant, but seems to be vague and unhelpful. Both websites have a registered log in available to customers. NikeID offers numerous benefits to being a registered customer including free storage of designs and free returns. Puma Mongolian BBQ’s registered customers allow them to store and purchase the shoe they customize.
Puma Mongolian BBQ has an icon at the top of the page to start a new shoe. The customer chooses the type of shoe and all the colors and textures on it. It provides zoom feature to help get the closest look. It also has the ability to turn the shoe so the customer can view it on all sides. On the bottom of the screen there is an option to view different parts of the shoe. In terms of internet speed, these features take somewhat of a long time to load. Choosing the colors can be confusing. Each area has its own specific name. Once the color is chosen for the specified area, the customer must turn the shoe to see where the color is applied. This can be hard to understand for most customers that do not have knowledge of the many names and parts of the Puma shoe. Since there are so many parts of this shoe, it can be fun for the customer to have full control over the entire shoe. Colors for the shoe come in different patterns and designs. Although customers can hit the “Buy Now” button at any time, it only brings them to the page when all parts have been completed. If parts have not been completed, the button seems to not work. The website does not inform customers that they have missed a step. This can be very difficult for someone designing the shoe to realize they have made a mistake. They would have to look at every last detail again to understand the problem. It can seem as if the website is not functioning properly, frustrating them and ultimately forcing them to give up.
NikeID loads quicker, but it much harder to navigate. It is very difficult to find the page that actually lets the person using the site to design his or her own shoe. The easiest way to get to the designing feature, is to click on a shoe that interests the customer and then press “start new.” This can be very confusing for many customers. The design stages are simple and flow easily. It also lists the many parts of the shoe, but highlights that part when the customer is designing it. It changes quickly to the preference the customer chooses. There is an option to follow an already existing pattern. This can help people decide what might look best. NikeID has few colors to choose from for various parts of the shoe. For some parts, there are only three colors to choose from.
The technology used to create the best customer experience is NikeID. Puma may have more design options and is easier to navigate, but NikeID’s website outweighs those two factors. NikeID has more shoe shape options. These options are accompanied by ideas and design option to help the customer. It loads the shoe faster and shows the customer where the changes are being made while designing. NikeID provides an option of writing something on the shoe, to further personalize it. The zoom on NikeID gives the designer a closer look than Puma at their shoe. Customers are able to share their design via email or Facebook. This can be an enormous advantage in today’s world of social networking. The customer service on NikeID proves to be a helpful feature in comparison to Puma’s vague customer service option. Customer service is a very important part of the website. Today, many people email each other interesting sites to try. If a poor impression is made on one customer who cannot receive customer service, it is likely they will not pass it on to a friend. Word of mouth via the internet is a very helpful tactic. NikeID is much more customer friendly and gives the best customer experience.