Fnac.com: An example of a successful E-business strategy

Résumé du document

I took Fnac.com as a subject for many reasons. The first one is that Fnac store are very developed in France which means, that they are one of the main actor in the compact and media industry in France. Since a couple of years and the development of peer to peer, Fnac had to adapt its offers if the challenge of technology. Indeed more and more people are downloading their music and film from peer to peer websites.

I also took it because, as a fan of music, I have been dealing with both Fnac stores and website. Moreover, we will discuss the success of the website also later in the document. This subsidiary of the FNAC group was created in 1999 in order to sell the stores products. The website is interactive in which customers rate the products, make comments etc.

They wanted to make their business a value of online shop. They propose more than 100,000 products and they want to expedite them within 24 hours and more than 1 million products are available on the website. FNAC.com also proposes a lot of services to the customers, like online training, photography development, follow the expeditions etc. For a couple of years, FNAC.com also proposed to watch movies or buy movies online thanks to the VOD (Video on demand), to download legal music and sell cell phone subscriptions.

Extraits

[...] It is quite difficult to enter in the technologic products distribution sector. A lot of money is necessary in order to pay the rent (and to be well located), to pay the suppliers and to have an inventory. A lot of new competitors are present but they are small competitors, with only one shop To become as big as the FNAC, a lot of time is necessary to get credibility, to increase the bargaining power with the suppliers and to be famous. [...]

[...] Thanks to the Porter 5 forces analysis, we can see that the technologic products distribution market is not an easy market. The rivalry between competitors is very high, there is substitutes services (supermarkets and Internet) which proposes the same products but with a lower price (because they don‟t propose the advices) However, the bargaining power of the customers is very low and the bargaining power of the suppliers is not very high. Moreover, it is not very easy to enter in the market and to grow in order to become a big company SWOT Analysis of the FNAC To analyze the positioning of the FNAC on the market, the easiest is to make a SWOT analysis, which will determine strengths, weaknesses, opportunities and threats. [...]

[...] So we can be very optimist on the success of the FNAC website. FNAC.com is a very good website and Internet users love it. It is the reference on the web, just like FNAC is the reference on the technologic product distribution The solution of e-business At the end of the 20th century, the Internet became accessible for almost everybody. At this time, it was a low-speed Internet (56 Kb / Second). But every body was sure that this technology will know a very large success and that it could be interesting to invest on. [...]

[...] That is quite important and FNAC has to be careful with them. Degree of rivalry The rivalry between all the retailers is very high. The price is something quite important for this kind of products and everybody communicate on this. Moreover, the profit margin on technological products is high. That is why generalist retailers began to sell it. There are a lot of retailers, and we can buy this kind of product almost everywhere. When I go to the supermarket, I can buy food, clothes but also TV, DVD, CD, computers, MP3 players etc. [...]

[...] Every other customer will if they click on the product. Customers have advices and recommendations. If they click on a product to see it, at the end of the page, it will be righted: “Customers who bought "name of the product" also bought There is generally gives 3 recommendations. So here are the elements added thanks to the appearance of the web Thanks to this, the website is more interactive. Customers have the opinion and the advice of the others internet users. [...]