I chose to compare www.sportsauthority.com vs. www.soccer.com.
1. The companies’ market segments are different in that Sports Authority offers a wide variety of sporting goods and accessories for many different sports while Soccer.com concentrates specifically in soccer related sporting goods and accessories. Sports Authority takes and industry wide approach while Soccer.com concentrates on an industry segment.
The different market segments that these businesses appeal to is impacted by their competitive pressures. Both companies face strong pressure from the threat of substitutes as e-commerce companies. The Sport Authority faces less pressure from the threat of new entrants because a larger financial investment would be required to take an industry wide approach as opposed to Soccer.com’s industry segment approach. Both companies face fairly significant pressure from existing rivals as many traditional and online retailers offer sporting goods, including more generalized companies such as Walmart. Because it is a significantly larger company, Sports Authority faces less pressure from the bargaining power of suppliers and customers.
The competitive strategies are also very different. Sports Authority offers similar national brands and products as other sporting goods retailers, but is very competitive when it comes to cost and focuses on the industry as a whole. Soccer.com focuses on an industry segment and is less concerned with cost and more concerned with carrying specialized, quality products.
The “feel” of the website content is vastly different as well. Soccer.com has a much more polished and aesthetically pleasing appearance. Soccer.com uses the entire page including graphics all the way out to the edges the page and a revolving banner ad towards the top of the homepage. The Sports Authority page uses a white background, does not utilize flashy graphics, and leaves wide white margins on the edges of the page.
The user interface “feel” of the websites is surprisingly similar. Once I moved past the flashy homepage of Soccer.com, the functionality and appearance of the sites were nearly identical. Both sites employ a standard product category selection option on the homepage, which then provides results that can be further filtered.
Both companies could potentially change their sites to better align with their respective competitive strategies. Soccer.com should carry the polish and feel of their homepage throughout the site. They could also potentially utilize live web chat with associates well versed in the various product lines in order to provide more personalized service. The Sports Authority’s broader market, lower cost strategy makes website updates less relevant. They are a much more known commodity due to their brick and mortar locations and their lower costs make website flash and functionality less important. Still, their website could use a bit more polish.
If Soccer.com were to add a live web chat component to the website, both the sales and marketing, and customer service activities would change in the value chain. Web chat associates would expected to answer questions form potential buyers as well as existing clients with service issues. The additional manpower would certainly add cost, but could that cost could potentially be outweighed by the value that the associates would be able to provide.
2. The structure of a company’s information system is highly dependent on the company’s competitive strategy. A company focused primarily on keeping costs the lowest across a specific industry or industry segment has a reduced need to heavily invest in information systems. A high cost information system could in fact be counterproductive for a company focused on cost as the system could add cost with minimal value add, thereby negatively impacting profit margins. A company focused on providing better customer service or products than the competition has significantly more motivation to invest in information systems as their competitive strategy is much more dependent on the customer experience. Higher prices allow these companies to potentially add more cost to the value chain in the areas of sales and marketing, and customer service without negatively impacting margins.