Green University Bangladesh

EMBA Program

Semester: Spring 2013

MIS

Assignment on

J&R

About J&R:

Joe & Rachelle Friedman opened their first music store on Park Row in New York City in 1971, where

they sold vinyl LPs of the current chart-toppers. Since that time, the business has expanded steadily. J&R

now covers a massive city block across from City Hall Park in the heart of Downtown Manhattan. The

stores are a "must-see" for many tourists and a "must-shop" for New Yorkers in the know. J&R's

business, too, has expanded. J&R Music & Computer World not only sells an incredible array of CDs and

a vast selection of top computer goods, but also digital cameras, cell phones, TVs, stereos, MP3 players,

DVDs, kitchen appliances and much more. They have developed a loyal base of customers around the

world through our catalogues and through JR.com (launched in 1998). In fact, J&R is the only company

to receive two separate "Retailer-of-the-Year" awards and, in 2010, Joe and Rachelle were inducted in

to the Hall of Fame by the Consumer Electronics Association.

Question & Answer:

1. Analyze J&R Electronics using the competitive forces and value chain models. What is its business model and business strategy? How does it provide value?

Competitive forces:

Porter's Five Forces Model

5 forces are:

I. Threat of New Entrants

II. Threat of Substitutes

III. Bargaining Power of Suppliers

IV. Bargaining Power of Buyers

V. Intensity of Rivalry

Value Chain:

Porter's Value Chain Analysis Model

J & R value chain model includes:

I. Inbound logistics: materials handling, warehousing, inventory control, transportation;

II. Operations: machine operating, assembly, packaging, testing and maintenance;

III. Outbound logistics: order processing, warehousing, transportation and distribution;

IV. Marketing and sales: advertising, promotion, selling, pricing, channel management;

V. Service: installation, servicing, spare part management;

Business Strategy:

i. Overall cost leadership: Through strategic relationships, authorized dealerships, the expertise of

buyers, and exceptional promotions, J&R can offer excellent prices and outstanding values.

Slogan “If you can find lower prices, from another authorized dealer, please let us know “

ii. Better Customer Support: J&R has experienced customer representatives for more personal

and spontaneous assistance. J & R Provides a digital environment where buyers can meet,

search for products, get information about the products, and purchase those products through

there we site www.jr.com

iii. Get customer loyalty: J&R use the Loyality Lab CRM package through which every customer can

have his own account and maintain there account and can know about the incentive he earned.

They also provide special promotions and rebate offers for the customer.

Business Model:

2. What is the role of the Internet in J&R’s business strategy? Is it providing a solution to J&R’s problems? Why or why not?

Role of the Internet in J&R business strategy:

i. 30% of revenue come from jr.com

ii. Blue Martin e- commerce platform which provid guided selling application and tailored

as per the requirement of the particular customer.

iii. On 2007 J&R introduce real time integration with its story inventory. So online purchase

is reflecting on the availability of the product and improve the accuracy of delivery date

and shipping fees

Problems of J&R:

I. Despite the increasing functionality by blue martini e- commerce plat from, J&R still

has limited of having physical store

II. Customer can order from anywhere and not need to come to the store physically

because of online , over phone ordering process

III. But the chain store can offer customer the option of ordering merchandise online and

pick it up from nearest store on that day.

IV. J&R can only make this option available for the customer in new work city area.

V. However e-commerce carried out potentiality from the business and represent the

future.

3. Can J&R keep up with the competition since it is more or less a local brand competing with

nation- wide chains? How would you measure its success in keeping up with the competition?

J&R can compete with chain shop in the new work city as:

i. Authorized Dealer : Each product you buy from J&R is backed by the full support of

the manufacturer

ii. Low Prices :Through our strategic relationships, authorized dealerships, the

expertise of our buyers, and exceptional promotions, J&R can offer excellent prices

and outstanding values

iii. Online Rebate Coupons and Offers: J&R also provide special promotions and rebate

offers for the customer.

iv. Customer Service : Customer can phone and speak to j&r experienced customer

representatives for assistance

v. Easy to Use Website: JR.com has received considerable praise from leading

publications and customers regarding the ease of navigating and ordering through

website

vi. Technical Advantage: J&R use the latest technology and creative idea which has an

better impact on the customers.