INSC 20263
Information Systems in eEnterprise
“All the Right Notes”
Project Proposal
submitted to
Dr. Beata Jones
By: Kaleb Merck, Sarah Petty, Scott Smidlein, Chasen
McClanahan, and Albert Rayle
Industry overview
• Instrument retail definition
- The musical instrument retail industry is based on companies that retail musical
instruments and the accessories that go along with them.
Industry Concentration
- The industry is currently dominated by "chain stores" such as guitar center. These chain
stores bring in "30% of the industry revenue" ("Hoover's"), and face full competition from full-
line independent stores for market share.
• Retail Prices
- The trend of pricing in the instrument retail industry has been a steady decline for about
10 years. The total trend of pricing ranges from "10 to 50 percent" ("Hoover's"). These price
reductions are due in large part toward "Chinese imported goods, competition from the big chain
stores, and a decline of instrest in instruments by American youth" ("Hoover's").
Employment and Wages
- Jobs in the musical instrument industry have seen a steadily increasing unemployment rate
in the past 5 years. Regional chains and independent stores are struggling to make a profit, and
"many are closing down or have been aquired" ("Hoover's"). Wages have also seen a steady
decline in the past 5 years, 2005-2006 saw the largest drop in wages with "a 25% wage
reduction" ("Hoover's"). These poor market trends are due to declining customer demand and
"flat [or break even] profit margins" ("Hoover's").
Advances in E-commerce
- National Suppliers are developing new ways to more effectively reach new customers and
attrach repeat customers through their online sales. Larger "chain" stores are offering "advanced
technologies including one to one marketing, comparison shopping, and sophisticated internal
search functions" ("Hoover's"). There is also a surge of competition for international online
shoppers.
Online Auctions (Small Store Success)
- Smaller chains are using ebay as a medium to sell their instruments. Online auctions
provide a great forum to sell "excess inventory, slightly damaged inventory, and used
merchandise" ("Hoover's"). Some of the independent retail stores have gone completly to a pure-
play business by using solely ebay as a storefront.
Top Competitors in the Industry
- Some of the top competitors in the instrument retail industry include: "[Guitar Center, Sam
Ash Music, JAM industries, Empire Music, Chesbro Music, and Schmitt music]" ("Hoover's").
Works Cited
"Musical Equipment Retail Industry Trends." Hoover's. 10/1/2009. D&B, Web. 1 Oct 2009.
<[Link] retail/industry_trends>.
"Musical Equipment Retail Industry Trends." Hoover. 10/1/2009. D&B, Web. 1 Oct 2009.
<[Link] Industry Overview.
Power HIGH LOW Justify
X X Buyer’s help to regulate prices, and keep the market in
equilibrium. Buyer’s are limited in their ability to venture into
Buyer Power different instrument distribution markets, because there are so
few. Buyer power seems to be distributed 50/50, because they
are limited in their negotiation abilities.
X Suppliers can set their own prices, but they also have to follow
market trends in order to stay competitive. Suppliers have the
Supplier Power most power because they control who they can sell their goods
to and there is a high barrier of entry. There is a very low level
of supplier concentration in the music distribution industry,
because of the quality needed to make the instruments
X The music distribution industry has a low threat of new
entrants because of the high cost of supplies and low amount
Threat of Substitute of need for new goods.
Products or Services
X X The Instrument distribution industry has a balanced threat of
new entrants. The high cost of supplies and low amount of
Threat of New need for new goods make it hard for un-established businesses
Entrants to make a profit or last, but it is fairly simple to open a new
store, because the overhead costs needed are fairly low. These
factors are the reason the industry is fairly stable.
X The rivalry among existing competitors is very high, because
of the low numbers of buyers in this industry. No one store
Rivalry Among controls too much of the market share. There is also a void of
Existing Competitors a wholesale center, so customers are forced to buy from
certain stores. Competition is fierce because suppliers are all
selling basically the same product. The big stores are the ones
who produce advertising, which allows them to have an
advantage in the industry.
Description of the competitive environment that is relevant to the use of the Web by the
industry.
Competitive Force … and their Web Usage within the Industry
Customers utilize the web to search for products, research
companies, and buy products online. Customers also look for
Customers contact information and
product showcasing.
Suppliers use the web to recieve orders for goods and ship them
to customers or retail stores. Suppliers use the web as a market
Suppliers analysis tool to determine the "hot zones" of customers or retail.
New entrants use the web as an advertising and publicity
forefront. They utilize search engines and google for "banner
New Entrants advertising" that will lead customers to their specific site. New
entrants also use the web to research the market and analyze trends
of intrest.
Internet marketing is the main usage amongst competitors in
the instrument retail industry. Cpmpetitors are using Web 2.0 to
Competitors develop social-media networking. The web is also used amongst
competitors to check on each other's prices or view financial
statements. The web is also used to research a specific regions
buyer base, and potential profit margins.
Musical instruments are considered to be discretionary
purchase items, so the level of demand is very sensitive to changes
Substitute Products in consumer confidence and household disposable income. This
leads to a market without the presence of any real substitute
products for instruments, seeing how they are quality crafted goods
the have to meet a high standard.
Using what you have learned about good/bad web design in class and using class notes, please
identify: four web sites in your industry that you believe are ‘good’ and four that you consider
‘poorly designed.’ (Each individual researches two companies.)
Sam Ash Direct Swords Music Company
Company Name
[Link] [Link]
Web Site’s URL
Musicians, people who need Musicians of any type and people
music equipment of any type. looking for musical accessories and
Site’s Venue and club operators and instruments.
anyone interested in music.
Target
Audience
To sell guitars, basses, drums, To sell instruments, musical
recording equipment, concert equipment and accessories
equipment, DJ equipment, and
other musical accessories.
Site’s Purpose
Yes No
Good? (Yes/No)
-Simple Background and layout -Lots of scrolling text and animated
colors texts
-Organized very smoothly -Color Scheme looks immature and
childish
-Homepage very simple and clear
Design elements from -Only one navigation bar
the lecture notes/lecture -Name visible
that contributed to a -Bad/messy layout
Positive/Negative -Navigation on the top and side of
impression the page, both of which have -Looks sloppy and unprofessional
multiple categories
- provide at least 3 for -Takes buyer to Ebay for online
each site & explain; -Pictures are interactive and shopping
professional looking
-Very up to date and user friendly
Attach website [Link]
screenshots with
discussed features
highlighted with [Link]
[Link] or
[Link]
First Quality Music Supply Tony’s Muzik Supply
Company Name
[Link] [Link]
Web Site’s URL
The site’s target audience is any This site’s target audience is only local
customer that is looking for a classy customers looking for directions to the
and well designed website, that is easy store
Site’s to navigate and make purchases
Target
Audience
To provide high quality instruments at To provide directions and a contact
the competitive prices to the customer. number
Site’s Purpose
Yes No
Good? (Yes/No)
1) The home page is correctly 1) The home page is not centered
laid out, and the image map is on the page, and there is no
an interactive flash program image map
that allows the user to scroll 2) There is an enormous amount
through different types of of excess white space or wasted
Design elements that instruments space on the website, and the
contributed to a positive/ 2) There is very little excess animation is slow and outdated
negative experience. white space, and the 3) There is no primary navigation
navigation bars are easily bar, or link bar. There is
accessible and clearly defined nothing to catch the customers’
3) The website is very neat and attention, most of the links do
well designed. The colors are not work, and the site in not
complimentary and the site is easily accessible.
easily accessible.
Company Name Musicians Friend The Retailer Online
Web Site’s URL [Link] [Link]
Site’s Musicians Musicians
Target
Audience
To sell musical equipment and Sell musical equipment and inform
supplies musicians about music industry news
Site’s Purpose
Yes No
Good? (Yes/No)
Design elements 1) Good visual connection. 1) Site has a lot of blank space
from the lecture 2) Rolling screens showing 2) Too much writing and not
notes/lecture that products. enough links.
contributed to a 3) User Friendly. 3) Nothing catches your eye and
Positive/Negative 4) Very easy to navigate makes you want to navigate
impression 5) Excellent cutomer the site.
personalization 4) Information appears to be
outdated.
Company Name Musicians Friend The Retailer Online
Web Site’s URL [Link] [Link]
Site’s Musicians
Musicians
Target
Audience
To sell musical equipment and supplies Sell musical equipment and inform
musicians about music industry news
Site’s Purpose
Good? (Yes/No) Yes No
• Good visual connection. Rolling • Site has a lot of blank space
screens showing products • Too much writing and not
• User Friendly. Very easy to enough links. Nothing catches
navigate your eye and makes you want to
• Customer personalization. navigate the site.
Newsletters, wish lists, deals • Information appears to be
(free shipping) outdated. Needs to be updates
Design elements from
the lecture notes/lecture
that contributed to a
Positive/Negative
impression
- provide at least 3 for
each site & explain;
Attach website
screenshots with
discussed features
highlighted with
[Link] or
[Link]
m
Guitar Center Musicians Headquarters
Company Name
[Link] [Link]
Web Site’s URL
Musicians- Upper Income Musicians- Lower-Mid Income
Site’s
Target
Audience
Promotions and Selling Buying, Selling, Trading, Informing
Site’s Purpose
Yes No
Good? (Yes/No)
-Main toolbar/Directional Headings on -Lacking Directional Toolbar across the top of
top of Home Page Secondary toolbar on the Home Page
left side of Home Page
-Company identification present, but fairly
-Pictures pop up immediately after difficult to locate
clicking a link
-Black background subtracts for ease of
Design elements -Attractive and interesting scrolling usability
from the lecture announcements front and center on Home
notes/lecture that Page -Boring text on center of Home Page
contributed to a
Positive/Negative -Clear company identification of each -Poor use of white space
impression page
-Difficult to locate pictures of instruments
Industry ‘key competitors’ (Select four of the well designed websites from the previous section
and have each individual research their company in more depth
Competitor’s name and URL of How (what What are their What are their
the web site features?) are they most effective or most ineffective
using on the web? unique ways of ways of using the
using the web? web?
Guitar Center Using the web to User can get most Lots of options to
showcase products up to date status on navigate through
[Link] and services, have prices and products; which is slightly
easy navigation, can get user reviews overwhelming.
online store, and for products,
customer service. frequent shopper
program.
Sam Ash Showcases products Simple interface, No frequent shopper
and services, easy not a lot of flash, rewards, contact
[Link] navigation, shows offers sound information for
specials and popular samples for some internet hard to find.
buys, has online instruments.
store.
Music123 Showcases products Search by Graphics not very
and services, has keywords, has a eye catching, too
[Link] search bar, shows beginners section, many options in
deals on online frequent shoppers navigation
store, customer program, customer
service. service.
The Instrument Store Shows products and Can use site in Lots of white space,
services. multiple languages design very
[Link] Specialized retailer and can pay in unappealing. Shows
in orchestra multiple currencies. off only one type of
instruments. Offers Easy and simple product.
multiple languages navigation.
and currencies.
Mr. E’s Music Shows products and Has a request Lots of white space.
services, has store information service, Design very
[Link] and quick search. simple to navigate, unappealing, needs
Easy navigation. easy to use quick to be updated. Very
search. poor navigation and
not enough choices.
Industry Key Competitors - Web Site Ratings
Company Website Ease of Site Visual Product Customer Overall
Name Content Navigation Appearance Connectio Showcase Interactivit
n y
Guitar 5 4 5 5 5 5 4.83
Center
Sam ash 5 5 3 4 5 3 4.16
Music 123 4 4 2 3 5 4 3.66
The 3 3 2 2 2 4 2.66
Instrument
Store
Mr. E’s 3 2 1 2 2 2 2
Music
Legend: 1-poor, 2-workable, 3-average, 4-great, 5-fantastic
Company#1: Musician's Friend, Inc. Ratings are 1-5
Rating Explanation of Rating
Website Content Retail center where a shopper can find an amplifier, guitars, fiddles,
violins, drums, etc. Shoppers can also purchase DJing equipment.
5
Ease of Navigation Very easy to navigate. There are scroll windows showing current deals,
clearance items, and new inventory. Also have a top search area and
5 buying guides
Site Appearance Looks very professionally done. Loads quickly and has a lot of moving
screens that keeps a viewer interested in the content.
5
Visual Connection There is a very consistent look and feel that runs along the site. The
moment it loads you start seeing inventory scroll across the screen and it
3 keeps you interested as you see their deals and promotional sales.
Product Showcase Lots of products and very user friendly. This site gives the viewer the
option of viewing their inventory by brands or by musical instruments
4
Customer Very personal with customers they have a facebook, twitter, newsletter,
Interactivity wish list, and will send you deals via RSS notification.
3
Total Score: 26 points
Company #2: First Quality Music, Inc.
Rating Explanation of Rating
Website Content Online retail center that has products organized and showcased by
specifics. Shoppers can find info or get questions answered on any specific
5 instrument. The site is very user friendly and is up to date.
Ease of Navigation The site features a primary, secondary, and link navigation bars. These
make finding anything the customer needs just one click away. The site
5 features a scrolling image map that allows the customer just click on a
picture and get a product.
Site Appearance The site is very professional and well organized. The main image map
immediatly jumps out at the customer and captures their attention. There is
5 very little excess white space and the colors complement each other. The
site corresponds with the companies position as a main player in the
industry.
Visual Connection The website has a constant look and feel throughout each of the pages,
which allows the customer to recognize the specific layout of the site. The
5 website has a strong look, which gives it identity amongst customers.
Product Showcase The products for sell are well organized and easily navigatable for
customers. Each product's features and descripition are listed and utilized.
5 The product images are smooth and transition seamlessly.
Customer The customer is able to track orders, personalize accounts, recieve
Interactivity benefits and coupons for being a repeat customer, and join a mailing list.
All these factors lead to customers becoming repeat customers.
5
Total Score: 30 points
Company #3: Guitar Center
Rating Explanation of Rating
Website Content The site is full of new inventory, promotions, information regarding
upcoming events, used products, and services. They supplement this with
5 contact info in case anything cannot be located on the site.
Ease of Navigation There are seemingly countless links to clearly indicated places throughout
the site. It is easy to return to where you have previously been and
4 everything is organized into appropriate categories.
Site Appearance The home page features scrolling announcements that are exceptionally
eye-catching. The text is easily readable and is supplemented by attractive
5 images. Red is used to highlight important information.
Visual Connection The site maintains a consistent look and feel by keeping colors, texts, and
fonts the same from page to page. The background remains the same.
5
Product Showcase This is one of Guitar Center’s greatest assets. The site has ample pictures
of every kind of instrument they sell, both by instrument type as well as
5 brand. In addition, they offer several different views of each item to create
a well-rounded view of their product.
Customer The site reaches out and personalizes itself to customers by providing a
Interactivity way to set up a personal account, a preferred player card, and a wish list. In
addition, the site has a “Help” link for various options of obtaining
5 feedback and assistance.
Total Points: 29 points
Company #4: Sam Ash
Rating Explanation of Rating
Website Content Sam Ash has everything a good instrument retail online store needs.
Plenty of products and services for user all offered both online and in store.
5
Ease of Navigation Sam Ash has a very simple but easy to navigate website that has no clutter
and good use of navigation bars.
5
Site Appearance Appearance is very simplified. This does not really affect the sites ability
to deliver a quality experience but it does hurt it because the user’s eye is
3 not caught instantly when first visiting site.
Visual Connection The simplistic feel does not hurt them totally. It gives the user the
impression they are more focused on the instruments and the company is
4 counting on their services to draw in the user. No Gimmicks here.
Product Showcase Does a fantastic job showcasing instruments. Offers customer reviews and
the user can even listen to some instruments before buying them.
5
Customer The site has a store and has online offers and coupons but lacks a frequent
Interactivity buyer program or any special benefits for frequent users.
Total Points: 25 Points
The industry’s strengths and weaknesses in regard to the effective use of the web?(at
least 3 each)
Strengths Weaknesses
1. In general, good showcasing of inventory 1. There are so many products and options that a
such that the customer can see the benefits of website visitor can get lost in all of the content
buying the product. and choices.
2. Websites allow customers to actually 2. Instruments are very expensive and detailed.
purchase and order products online without It is difficult to portray why they are unique
having to visit a physical location. enough to spend the money on without the
customer seeing firsthand.
3. Websites enable customization and
personalization that reach out to shoppers and 3. Ordering products can be risky to a customer
create loyalty. because they cannot witness the entire purchase.
4. Sites have multiple ways to contact an actual 4. Not enough information on the different types
person for questions so the customer does not of brands. The customer cannot easily see the
feel alienated. benefits of each.
Proposed website enhancements for the industry(at least 3 each):
i. What type of information would you recommend they add to their
websites?
1. Websites should include more information about the brands of the
products that they sell, and
perhaps even recommend some more than others.
2. Price comparisons would allow customers to see the advantage they will
have if they buy
from each particular company. If prices are higher than competitors, the site
should explain why.
3. If the websites would focus themselves more on creating an inviting and
family-oriented
environment rather than simply focusing on sales, they would create even
more customer loyalty.
i. What modifications would you recommend to their web design?
[Link] should have more audio clips. They could have audio connected to each
instrument so the
customer can hear the specific sound of the product.
[Link] could also have links to youtube videos of their products being used
live in concert or
have an artist promote the instrument.
[Link] music industry has the freedom to look more modern than most sites do.
Companies should
make their sites look more classy or chic.
Name of the company that you propose to create and its geographic location:
Our team would like to create "All the Right Notes", located in Fort Worth, Texas, which is
in the instrument retail segment of the music industry.
Detailed description of the proposed new business, including mission/goals, services
and products it will offer, size, etc.
The proposed new business will be a music instrument retail store with an integrated
internet and physical store. The mission statement of “All the Right Notes” is: The
greatest experience for the greatest customers. The selectivity of the music instrument
retail industry causes a strong emphasis on customer service and satisfaction. The
primary goal is to provide the best service as efficiently as possible. As a retail store,
services are limited, but the music experts at All the Right Notes will feature an
instrument repair center to guarantee that you truly hit all the right notes. Products
offered will range from speakers, guitars and DJ equipment to lighting, cords, and more!
The mainstay of the company will be a local sized company with big company prices.
The online aspect allows for our headquarters to efficiently stock inventory and make
orders as necessary. A physical presence is truly needed however, and will be the face of
the company.
Determine which of Porter's Three Generic Strategies you will use as you build your
company for the 21st century. Explain your answer.
The narrowed market pushes our company to a more Focused Strategy. In our industry, the
same products are offered by different companies to the consumer, but what sets apart our
company is the emphasis on customer satisfaction and loyalties. With this advantage, we can
offer our customers the optimal choice in purchasing their instruments. As profits increase,
our company can shift its strategy accordingly to attempt to gain a market share.
Discuss the many eBusiness strategies that your company could use to increase
revenue and decrease cost.
Company web site’s target audience – who will use the website (internally and
externally), for what purpose and where are they located geographically?
The target audience of our merchandise varies across many ages but all share a passion
for music. This common ground can allow a focus on the musical instruments themselves
as the selling points instead of modifying looks and styles to a certain age genre. Old and
young both will use our website across the United States to order their musical
instruments. Our web design will be sleek, classy, and professional – which never
becomes outdated.
Company’s website purpose:
The purpose of the website is to allow customers full service while ordering our product
while promoting our company’s image.
Company’s primary usage of the web:
Is the primary use going to be informational or transactional or both? Justify.
-It will be primarily transactional with a small segment of informational bits. The
informational segments will be used to describe our physical store locations and
instruments.
What pages will be found on the website? Please list major sections of the site.
-Major sections will be: Home Page, DJ Equipment, Audio, Guitar, Drums,
Keyboards, Pianos, Accessories, About Us, Find A Store Near You, Contact us.
Is the website primarily for B2B (business to business) or B2C (business to consumer) or
both? Justify.
-It is primarily business to consumer. The target consumer will be the everyday musician
or DJ. Our company is focused on geographical locality with an emphasis in internet
accommodations.
How can an eBusiness strategy help your company attract customers and increase sales?
The shift away from physical business to business conducted online has shifted the entire
face of how business is conducted. The easiest and most efficient way to spread
awareness about your company and streamline transactions is over the web. Naturally the
online capabilities of our business will allow for easier advertisement, peaked consumer
interest, and therefore an increase in sales.
How could eBusiness strategy help customer service?
Ebusiness strategy allows for instant customer service. One of our primary tools will be a
live chat with a customer service representative. This instant messaging program will
allow customers the highest quality of quick and efficient customer service.
How could you use an eBusiness strategy to partner with suppliers?
Suppliers who give us the products will also benefit from our web capabilities. The
tracking of inventory and necessary supplies will allow supply managers to more
accurately ship the necessary items to the physical store but to online distribution
warehouses as well.
How could a portal help your employees?
A portal will help keep our employees together on the same page. With a wealth of
information at their fingertips alongside free communication, there is no doubt that our
company would benefit greatly with the aid of a portal.
How could a kiosk help your business?
A kiosk could help the business by allowing customers to experience a greater variety of
instruments and designs than offered by a physical location. They can also perhaps
redeem online coupons and other helpful tidbits to better navigate our store.
What types of metrics would you want to track on your eBusiness Web site? Be sure to
justify your answers.
The greatest metric would be the tracking of items sold online and alternatively the
reports from physical store consumers who were referred to our company by our
products. Ad space and number of hits is not our primary concern when dealing with our
particular industry. We feel as if the greatest success will be measured through physical
sales records.