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

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

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Abstract

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.

Introduction
Analysis of the market
1. Bargaining the power of buyers
2. Bargaining the power of suppliers
3. Barriers to entry
4. Substitutes services
5. Degree of rivalry
SWOT Analysis of the FNAC
The solution of e-business
1. The structure of the web site
2. The first purpose of the website: a function of brand image
3. The website today
Synergies between the stores and the website
Conclusion

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[...] The price is something quite important for this kind of a product and everybody has an opinion about it. 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 these products almost everywhere. When I go to the supermarket, I can buy food, clothes but also TV, DVD, CD, computers, MP3 players etc. So we can buy technologic products elsewhere than in specialized shops. [...]

[...] If they click on a product to see it, at the end of the page, it will be written: “Customers who bought "name of the product" also bought There are generally 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. So they feel more encouraged to buy the product the grade and the comments are good) or, at the opposite, not to buy it (if the grade and the comments are not good) The website today The website has grown during the time. [...]

[...] The rivalry between competitors is very high, there are 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. [...]

[...] This is the last creation of the FNAC website Synergies between the stores and the website To have a good e-business solution, the website of the company and the stores has to be complementary. To make a transit between the shops and the website, two tactics have been managed: People who buy in the stores are invited to go to see the website thanks to the plastic bags given. In all the plastic bags, it is written FNAC.COM and not any more FNAC. [...]

[...] So at the beginning of the FNAC online, the website had only an information and a commercial function. It was very simple but not everybody had access at Internet and buy products online been not very frequent. So the creation of the website was more for the image of the company (show that FNAC was a modern company and believed on the development of Internet) than to develop sells. FNAC restructured its website and redesign it. Since this date, Internet users can so the same thing than before (see the products, the technical descriptions, order online, see the nearest shop etc) but other functions have been added: Customers can give a grade to the products. [...]

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