Chap 2
Chap 2: Value Chains
Bookmaster Case Study
Summary
The case study is the story of customer – Drew, when he went to the Bookmaster store to buy a hard-copy book. After a frustrating 25-minute ordeal to get to the store, through a quick search on the store’s computer from the customer relation associate (CRA), he found out that the store had two copies. However, after a careful search the shelves for the book then information from computer system, there were not on the shelf as expected and only one Bookmaster store across town which is 15 miles away has this book. The CRA asked if Drew could drive over there and get it or she could order it for him but he might get the book in two days. Because the two options made Drew unpleasant, then the CRA suggested another alternative is that he could download the digital form of the book with $19.95 that would save $20 for him. Still, it’s inconvenient for him to read because he didn’t have iPad or Kindle. Thus, he left the store and came back to his apartment in frustration and disappointment. Furthermore, the Kindle and iPad designs create various restrictions on their use. While the creator of digital content are only concern about diminished or no royalties due to piracy of their work but their customer’s satisfaction.
Case Questions for Discussion
5. What other criteria and issues are important in critiquing these two different value chain designs?
The previous questions cover this question very well but here are some more summary thoughts we can use here. We might emphasize the nature of service encounters and sustainability:
(a) A disruptive technology called the Internet is redefining the value chain in this industry,
(b) Price, cost and speed reductions are dramatic hundreds and thousands of percent improvements,
(c) The nature of the service encounters are greatly changed (bricks and mortar stores use people to people service encounters while virtual stores use people to people (call centers) and people to
Bookmaster Case Study
Summary
The case study is the story of customer – Drew, when he went to the Bookmaster store to buy a hard-copy book. After a frustrating 25-minute ordeal to get to the store, through a quick search on the store’s computer from the customer relation associate (CRA), he found out that the store had two copies. However, after a careful search the shelves for the book then information from computer system, there were not on the shelf as expected and only one Bookmaster store across town which is 15 miles away has this book. The CRA asked if Drew could drive over there and get it or she could order it for him but he might get the book in two days. Because the two options made Drew unpleasant, then the CRA suggested another alternative is that he could download the digital form of the book with $19.95 that would save $20 for him. Still, it’s inconvenient for him to read because he didn’t have iPad or Kindle. Thus, he left the store and came back to his apartment in frustration and disappointment. Furthermore, the Kindle and iPad designs create various restrictions on their use. While the creator of digital content are only concern about diminished or no royalties due to piracy of their work but their customer’s satisfaction.
Case Questions for Discussion
5. What other criteria and issues are important in critiquing these two different value chain designs?
The previous questions cover this question very well but here are some more summary thoughts we can use here. We might emphasize the nature of service encounters and sustainability:
(a) A disruptive technology called the Internet is redefining the value chain in this industry,
(b) Price, cost and speed reductions are dramatic hundreds and thousands of percent improvements,
(c) The nature of the service encounters are greatly changed (bricks and mortar stores use people to people service encounters while virtual stores use people to people (call centers) and people to