Question

Discuss TWO findings at the Operations management level (Inventory Department) that can be used to justify the Metro-E and VPN solutions. From the following models - subscriptions (usually all you can eat), a la carte (pay for what you use) and “freemium” (uses advertising revenue to provide content for free), make TWO recommendations on ways to start generating more revenue via an eCommerce website.

Answer 1

As companies are witnessing stiff competition in the industry, they are resorting to technology to develop their leverage and competitive advantage in the industry. Data has emerged as the critical source of competitive advantage for companies. Metro Ethernet and VPN are some systems which are used by companies to maintain its data on the cloud and facilitate connectivity across business.

2 findings which justify the Metro E and VPN solutions in the inventory and retail sector are as follows:

· These systems facilitate data connectivity among the different warehouses and distribution centers of the company, thus keeping all inventory systems in loop.

· Metro-E and VPN solutions help in updating inventory data of different warehouses and distribution centers on the Cloud. Hence the organization can keep a tab on the inventory of different products and can avoid any stockout situations.

2 recommendations on ways to start generating more revenue via an eCommerce website are as follows:

· The companies can set up customer loyalty points. Customers uploading picture of their order along with a feedback for the ecommerce company on social media sites will win them extra loyalty points. These points can be redeemed by customers while shopping. This intervention can provide free publicity to the company, increase its market visibility and thus facilitate generation of revenue. This can be considered a part of the freemium model.

· There is a rising trend of ecommerce companies collaborating with MNCs. The ecommerce company can come up with offers for group subscription of employees of the MNCs. This customized group subscription can be well lauded by employees and make them to get associated with the ecommerce company. This can be considered as a part of subscription model.