Green University Bangladesh

EMBA Program Semester: Spring 2013 MIS

Assignment on


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 (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. II. III. IV. V.

Threat of New Entrants Threat of Substitutes Bargaining Power of Suppliers Bargaining Power of Buyers 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;


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 “


Better Customer Support: J&R has experienced customer


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


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

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. ii.

30% of revenue come from Blue Martin e- commerce platform which provid guided selling application and tailored as per the requirement of the particular customer.


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: 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.

Sign up to vote on this title
UsefulNot useful