Electronic Commerce and Mary Kay
CASE STUDY :MARY KAY EC SYSTEM
Mary kay was founded 1962 the business has about 1,8 million consultants selling its cosmetics and fragrances in 34 countries. It has about $2.4 billion in whole sales.
The drivers of EC at Mary Kay include:
Expand universe of potential buyers
There is an increase of sales
Customers expectations are met
Increase brand products
Ease of doing business
Competitive pressure
Cost effectiveness
Provides more information to customers
Improved customers service
New sales channels
Business pressure faced by Mary Kay:
The major problem face by Mary Kay is competition in the cosmetic markets. The business tries to handle the pressure by enabling rapid growth into markets sectors. Mary Kay also lacked web or e-commerce applications so as a result it could not manage the 2million consultants. The business found a solution to this pressure by splitting it IT departments into three division i.e. e-commerce, supply chain and back-office support. But their main focus currently is e-commerce. Mary Kay have created an electronic service desk that support 30 countries in a standardized way, the company is also introducing a global electronic ordering system called atlas that allows it’s consultants to communicate with the company warehouses. Also an intelligent data repository that dynamically maintain a logical model of the EC environment that can be accessed by Mary Kay IT staff.
The new EC models implemented by Mary Kay are:
Social networking the business does this by posting jobs opening announcement on several sites like MySpace, YouTube etc the provision of blogs are also available for comments and suggestions. Auction and fixed price items are available for sales on ebay.com, they provides a consultant location on the internet (marykay.com/location)
The kind of EC transaction Mary Kay is involved in:
Mary Kay form of EC transaction is a B2B transaction and her sales option is a C2C transaction.
Mary Kay social network
Mary kay was founded 1962 the business has about 1,8 million consultants selling its cosmetics and fragrances in 34 countries. It has about $2.4 billion in whole sales.
The drivers of EC at Mary Kay include:
Expand universe of potential buyers
There is an increase of sales
Customers expectations are met
Increase brand products
Ease of doing business
Competitive pressure
Cost effectiveness
Provides more information to customers
Improved customers service
New sales channels
Business pressure faced by Mary Kay:
The major problem face by Mary Kay is competition in the cosmetic markets. The business tries to handle the pressure by enabling rapid growth into markets sectors. Mary Kay also lacked web or e-commerce applications so as a result it could not manage the 2million consultants. The business found a solution to this pressure by splitting it IT departments into three division i.e. e-commerce, supply chain and back-office support. But their main focus currently is e-commerce. Mary Kay have created an electronic service desk that support 30 countries in a standardized way, the company is also introducing a global electronic ordering system called atlas that allows it’s consultants to communicate with the company warehouses. Also an intelligent data repository that dynamically maintain a logical model of the EC environment that can be accessed by Mary Kay IT staff.
The new EC models implemented by Mary Kay are:
Social networking the business does this by posting jobs opening announcement on several sites like MySpace, YouTube etc the provision of blogs are also available for comments and suggestions. Auction and fixed price items are available for sales on ebay.com, they provides a consultant location on the internet (marykay.com/location)
The kind of EC transaction Mary Kay is involved in:
Mary Kay form of EC transaction is a B2B transaction and her sales option is a C2C transaction.
Mary Kay social network