Black

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Black White

• 200324004 ???
• 200324007 ???
• 200324015 ???

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1. Use the competitive force and value chain
models to analyze wine retailing as an Internet
business model.

• Virtual storefront

Wineshopper.com
Virtual vineyard
Wine.com
E-vineyard
the industry
Sun, winespirits
Not common wine, Requiring more than
quality wine
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• Value chain model

Administration and management three-tiered
system
V a l u e
Technology ERP application cluster, application
cluster
Procurement ERP application cluster
Inbound logistics ERP application cluster
Sales Marketing ERP Application cluster
Service Oracle D.B almost 1 terabyte of
storage
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2. Compare the business models and strategies for
Internet wine retailing used by WineShopper,
eVineyard, and Virtual Vineyards. Discuss the
flaws and strengths of each company.

• Wineshopper.com
• They raised in virtual capital.
• Discriminating through secure of database.
• Strengths They can deliver any bottle from
  anywhere in the world
• They can exclusively from the listings in
  wholesalers database
• Flaws They experienced many delays in going
  live and in expanding because of software
  problems.

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• Virtual vineyard
• Peter Granoff partnered with computer expert
  Robert olson to launch Virtual Vineyard.
• They offered wines from the finest wineries, and
  screened them for quality to expand slowly,
  working with wholesalers, retailers to enable
  them to sell wines eventually in many states.
• Virtual Vineyards had no licenses to make in
  funding.

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• E-vineyard
• Virtual storefront buy wine only a customer
  ordered it.
• Its strategy also included expanding one state at
  a time, obtaining retail licenses in each state.
• And it was only able to sell the wines that its
  regional distributors handled.

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3. Do you think WineShopper.coms business model
was a difficult model to work with, and why? What
management, organization, and technology issues
contributed to this companys failure?

• Difficult model
• -D.B it overly depends on the database which
  collected wholesalers.
• M The support of WineSpirits wholesalers of
  America.
• O The wholesalers set the price.

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• -Software Its goal was to have a system running
  in the states that reached 70 of the U.S market
  by the December holiday season.
• However the company took too long to go live,
  blaming tits problem on software.
• It was spending so much money that in August 2000
  it merged with Wine.com
• M Over investment
• T Lack of technology, different code structure
• Each wholesalers
• O each wholesalers

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4. How important to e-Vineyards success to-date
were the timing, management, and the strategy?
How important was the role of technology? In your
opinion, why was e-Vineyard the eventual winner
in the race for online wine sales?

• Timing avoid to trial and error.
• Management effective employment.
• Strategy virtual inventory.
• Above all, they had competitive forces at the
  cost of wine.

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5. Do you think wine retailing can succeed on the
Internet? Explain your answer.

• Yes, the retailing can succeed on the internet.
• (1) Reducing intermediary steps in a value chain
  - Reducing cost.
• (2) Providing convenience to customer.