E Commerce Case Study 1

Page 163-165, #’s 1-3

1) Prepare a report in which you analyze the marketing channel conflicts and cannibalization issues that Lonely Planet faces as it is currently operating. Suggest solutions that might reduce the revenue losses or operational frictions that result from these issues. a) Lonely Planet has several forms of marketing channel conflicts and cannibalization. These forms range from print media, to Internet videos, to television shows and even travel services. Cannibalization is evident where many of the books are now being substituted for forums, online articles, and digital photo galleries. Some of these new electronic forms of media are even subscription based. I think that Lonely Planet needs to keep its major business entities separate from one another and try a separate name for each category. These could be broken down into travel services, publications, and strictly online based media social networking website. The publications can retain the ‘Lonely Planet’ name. The social networking site could have a fresh name and look, but be mentioned that it is brought to you by the same people that bring you Lonely Planet. The same goes for travel services. This will keep peoples purchases separated with the want to buy from different vendors, but with the backing of a trusted company.

2) Prepare a list of new products that Lonely Planet might introduce to take advantage of Internet technologies (including wireless technologies for mobile devices) and address customers’ concerns about the timeliness and currency of information in the printed travel guides. Briefly describe any problems that Lonely Planet will face as it introduces three new products. b) There are many options to take advantage of Internet technologies. One is as simple as developing an application for Android and IOS devices. This will allow people the ability to use their current location and have the app search quickly for them attractions nearby without having to type a single word. The app can also give real time updated articles that will be current to the reader/traveler. This will blow away the concerns about issues with currency and outdated articles. Again, as this product is introduced, I believe it should have its own recognized name, but be backed by Lonely Planet. If people figure out that it is this easy to access articles for free and the comfort and convenience of them being right in the palm of your hand, a subscription may have to be implemented, but lets say the first three are free. A digital bridge to the once printed publications is cannibalization. Being that the printed publications is such a large part of their revenue, this may want to be thought about and tested thoroughly before it is implemented.

3) Many loyal Lonely Planet customers carry their travel guides (which can be several hundred pages thick) with them as they travel around the world. In many cases, these customers do not use large portions of the travel guides. Also, Internet access can be a problem for many of these customers while they are traveling. Describe a product (or products) that might address this customer concern and also yield additional revenue for Lonely Planet. Your answer here could build on ideas that you developed in your solution to part 2. c) These customers may want to have the convenience of using a physical travel guide at home to plan out their destinations. A benefit to not having to carry a thick, couple hundred-page book would be enormous. This is where a full digital copy or individual chapters could be sold and used on handheld devices such as e-readers, tablets, and smartphones. The customer could also print out the sections they desire to have handy while out and about if an electronic device is not applicable for the location that they are visiting. These digital copies do not require Internet access, except for the initial download. This is perfect for areas without this type of amenity.