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Fnac
com asaunchedasaartofecommerce usiness !Fnacdirectin 
tentered
this usiness ith hesitation ut ithin fe !ear Fnac
com ecame the highest revenue
generator and as ranked th in first "uarter of # 
Fnac as a su sidiar! of rinaut-
rtintems- edoute $ % 
 as a seciaist distri utor in tim er industr! and it gre
overthe!earsthroughseriesofac"uisitions 
heresentcasedescri esthe  usinessand
its various su sidiaries and aso Fnac 
he case is a out channe management 
he case
descri es the e commerce usiness of Fnac and the diversification of core retai format of
Fnac 
he  usinessfacescometitionfromvariouscomaniesikeFrenchh!ermarket, 
age
comandamazon
com,oninediscountersand musicgiantsikeÊon!,irgin, e  

hecasedescri esthediversified usinessof andhothesesu sidiariesare managed  

he main strength ofFnacretai usiness$offine%isthat it offersa iderange of roducts
andthesaesersonarereaexert,recordcoectoror ookormshichhescustomerto
chosethe estroduct 
Fnac outetsareresentin majorcities inFrance 
heaveragestore
saceiss"
mandthereare#suchstores 
Fnachashighestmarketshareinmostofthe
categories 
Fnachasdiversifiedits usinessintoFnacjunior,FnacservicesandÊurcouf 
Fnac
got&ofitsrevenuefroma roadandsoitaunchedaggressiveinternationastoreoening 
rogram 
s a resut the internationa store reached # stores in  from just  stores in  


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heke!hichareinthemindof'anoning,(ofFnacirectandhichisneededto e
discussedisasfoos,

~c sitossi eforFnactointegratetheironineandoffine usinessfurther?
~c Êhoud the coman! further move raid! into ne areas such as digita music
donoad?
~c otoimrovecustomerservice?
~c otofightinternaandexternacometition?
~c othechannesshoud emanaged?

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~c he major usiness of  is mai order service, deartmenta stores, househod
aiancesandfurniture,cuturaandeisureroduct,eectricaarts,automo ieand
harmaceutica 
resent! there is integration of Fnac
com and mai order service in
hich the roducts are deivered to customers free of cost 
here can e a further
integration ! shocasing roductsfrom other usiness onthe  usiness 
resent!
Fnac
comhassameroductsasinoffine usiness 

~c Fnacisinvovedinseingcuturaandeisureroducts 
utofthismusic, ooksand
ticketing service forms a major art 
he music saes face stiff cometition from
Êon!, irgin, etc 
so onine music donoad has gained momentum 
here is
groth seen in the num er of internet users so Fnac can enter in digita music
donoadsegment 

~c hecustomerservicecan eimroved !havingmorecacentres,essaitingtime,
exeriencedandcustomerorientedsaesforce 

~c he  retai sector consist of su sidiaries ike Fnac, a edoute and (onforma 

hus it has interna cometition eteen its su sidiaries 
his cometition can e
avoided ! using different ositioning strateg! ! each su sidiar! 
t faces externa
cometition from onine retai major ike mazon 
oever it has ess reasons to
orr!as mazonhasnoterformedeinFrance 
oeverasmajorsaesofFnac
comes from outside the countr! mazon is a major threat to it 
t can tacke !
imrovingthee siteandhaving ettercustomerservice  

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hefooingareourrecommendationhichcoversatheimortantcase"uestions 

~c îe think that Fnac shoud kee their offine and onine usiness distinct 
he
roductsofferedinstoresarecuturaandtechnoogicaroductshereasavariet!of
roducts are offered onine 
he ositioning of oth the usiness is different so the
onine usiness shoud give information and revies a out the roducts resent in
store 
heoninee siteshoudtargetthe!outhandmetrooitancustomers 

~c he e site shoud focus more on re reease ooking of ooks, ( and  
t
shoud rovide customization so that customers see on! those roduct categories in
hich the! are interested 
he! shoud make tie us ith a!ment gatea!s and
shoudseethatthereishassefreecreditcarda!ment 

~c Fnac shoud make technoogica investment, invove in customer ac"uisition and
marketing 
îarehousing,ackagingandshiingshoud ecoordinatedtoensurefast
deiver! 

~c îeroosethatFnacshoudrovideoninemusicdonoadandchargeitinrangeof
 
to  
Franck er song 
t can give o!at! oints to those ho donoad songs
throughitse site 

~c shoudensurethattheroductsavaia einFnacstoreshoudnot eavaia ein
itsfagshistores 
tshoudensurethatthereisnochanneconfict 

~c  has inorganic groth and it has gron through series of ac"uisitions 
Fnac on
other hand has organic groth and has gron through diversification 
 has
seciaization in distri ution 
Êo it shoud use a unified distri ution s!stem and its
usinessgroushoudhaveindividuacontro 

~c ofight ackoninediscountersitshoudmakethee siteattractive,givediscounts
ike & discount hich it initia! had offered, offer o!at! oints and use
innovativemarketingstrateg! 

~c îe fina! oud ike to roose that  shoud ac"uire more usiness and Fnac
shoud diversif! its usiness 
Fnacshoud enterin ne usiness ike nternetservice
rovider,teecomsector,onineticketing,etc 

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