Scenario 02: Deep Discount Tires (DDT)

Deep Discount Tires (DDT) began as a small auto repair and tire shop in a small city outside of Woodbridge, Ontario. While the original goal of the shop was to gain a reputation for quality repair, the owner also wanted to place special emphasis on meeting customers needs on sale of tires.

DDT carries a wide selection of tires in their warehouse, so that customers can always be served on the spot. Its staff is highly trained and knowledgeable about tires and cars in general.

Over time, selling tires has turned out to be more profitable than auto repairs. This is due to the fact that tires have a pre-defined useful life and need to be replaced, thereby creating opportunities for returning customers as long as they are satisfied with the quality and purchasing experience. Moreover, tires also need to be maintained periodically and changed due to seasonal requirements. This also results in additional recurring business for DDT, especially given their loyalty programs providing discounted services for tire rotation, balancing, and periodic maintenance services.

While the owner intends to maintain the auto repairs business, he wants to use the Internet to expand tire sales and to capitalize his staffs understanding of the customers needs. The owner believes that an appropriate strategy can not only help DDT improve customer service locally, but also expand its customer base and help it create retail outlets in new locations.

Scenario 02: Deep Discount Tires (DDT)

Deep Discount Tires (DDT) began as a small auto repair and tire shop in a small city outside of Woodbridge, Ontario. While the original goal of the shop was to gain a reputation for quality repair, the owner also wanted to place special emphasis on meeting customers needs on sale of tires.

DDT carries a wide selection of tires in their warehouse, so that customers can always be served on the spot. Its staff is highly trained and knowledgeable about tires and cars in general.

Over time, selling tires has turned out to be more profitable than auto repairs. This is due to the fact that tires have a pre-defined useful life and need to be replaced, thereby creating opportunities for returning customers as long as they are satisfied with the quality and purchasing experience. Moreover, tires also need to be maintained periodically and changed due to seasonal requirements. This also results in additional recurring business for DDT, especially given their loyalty programs providing discounted services for tire rotation, balancing, and periodic maintenance services.

While the owner intends to maintain the auto repairs business, he wants to use the Internet to expand tire sales and to capitalize his staffs understanding of the customers needs. The owner believes that an appropriate strategy can not only help DDT improve customer service locally, but also expand its customer base and help it create retail outlets in new locations.

On page 3 of this document, you will find two business scenarios looking to expand their virtual presence in the market by leveraging information systems. For each business model, you are expected to review the provided scenario and perform necessary research to answer the following questions in the form of a well-structured memo (no more than 1,500 words) to the owners / senior management:

1. Articulate the goal of the organization and the role of information systems in clear and concise manner;
2. Analyze the industry and competitive marketplace as well as identify the best competitive strategy to pursue given the companys strengths and weaknesses;
3. Compare and contrast the top two eCommerce business models (advantage and disadvantages) that may suit the overall objective identified in #1 above and recommend the best eCommerce business model based on your analysis (See Appendix A for an overview of the various eCommerce business models);
4. Describe the nature, type, and role of each of the five components of information systems in supporting your recommended eCommerce business model to help the organization achieve its overall objectives; and
5. Recommend specific types of hardware, data storage, and networking requirements / technologies to support the effective deployment of the recommended eCommerce business model.