Egghead.com Harvard Case Solution & Analysis

Egghead Software, entrenched retail chain specializing in computer software and peripherals, was a nationwide chain of mall and shopping center stores and well-organized national brand. In early 1998, management has a very unusual and probably unprecedented decision: the company closed all its stores in North America and moved to retail operations exclusively on the Internet. A rejection of the market in favor of the virtual market illustrates the differences in the management of retail operations for the "information products", such as software, and "natural products", such as home furnishings and tools. The fact that the software can be viewed, collected, bought, and even apply on-line indicated on Egghead control high costs in fixed assets and labor are the physical retailers have not been justified by category. Egghead brand promise can be implemented as efficiently at a lower cost of operations on the Internet and the web can begin to provide new sources of customer value as Egghead site by unique features and advantages of the digital environment. "Hide
by Jeffrey F. Rayport, Jeremy B. Dunn, Rob Schmults Source: Harvard Business School 18 pages. Publication Date: June 12, 1998. Prod. #: 898283-PDF-ENG

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