Case Study 2 Homework They Also Make Sure That They Have

Case Study II-5 The Cliptomania Web Store

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Teaching Note on Case Study II-5

The CliptomaniaTM Web Store

Objectives

This case study illustrates the complexities involved in developing and operating a successful

business-to-consumer (B2C) e-business.

Overview

This is a revision of the original case written in 2003 that includes the experience of this Web

store up through 2010. During this time they have experienced very difficult economic

conditions and the Web environment has continued to exhibit dynamic change. Despite these

difficulties, Cliptomania has established and maintained its position as the most successful Web

store selling clip-on earrings.

Cliptomania, LLC. is a Web store that sells nothing but clip–on earrings. Cliptomania was

Questions for Discussion

1.

a) They have identified and exploited an attractive niche. A very small percentage of the

population wears clip-on earrings, so the limited number of people who visit a brick-and-

b) The Santos have a strong commitment to their mission of providing a good selection of non–

pierced earrings to everyone who wants them. This has kept them focused on how to best

c) Jim has been very careful and deliberate, taking the time to comprehensively research every

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d) Candy has the ability to choose earring styles that will sell, describe them in an appealing

e) They were able to develop personal relationships with some of the manufacturers, and these

relationships enabled them to get attractive products before they could order in large enough

f) They started at a time when you could get into the business on a shoestring, and because they

2. Do a SWOT analysis for Cl

opportunities, and threats.

Strengths: They have a niche in which they are the dominant player. They have an outstanding

reputation with their customers. They have low overhead. They have the skills and capabilities

required for success in this business.

Weaknesses: They are very thin. If something happened to Candy they would be in real

3. Describe the difficulties of selling internationally on the Web.

There is the obvious difficulty of language, although there are a lot of people overseas who can

read and write in English. Depending on where you are selling, verifying the validity of credit

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4.

the URL from cliptomania.com to cliptomania.net?

Google combines two factors to determine the relevancy rankings. One of these relates to the

5. Why is it important that a Web store manager understand how the search engines

determine the relevancy of a site?

Potential customers find your store by using the search engines and your position on the search

results page determines whether or not the potential customer will find you. If you are at the top