Telecommunication refers to services that are offered to the public at a fee. Some of the services available at my place of residence include the dial-up cable, T1, T3, satellite, fixed wireless, oc-12 and BPL. These services cost 10, 35,457,50,2000,750000 and 30 dollars respectively (Effy, 2007, p.198).
The ratio of maximum bit rate per dollar to the monthly fee for each service is as follows; 5600 for Dial-up,0.0857143 for cable,0.0175055 for T1, T3, 0.02 for satellite,0.0008294 for OC-12 and 0.1 for BPL. Dial-up telecommunication service provides the biggest bang for the bulk (Effy, 2007, p.198).
Overstock.com has a higher competitive advantage over other retailers for incorporating technology. This arises from the fact that the firm can access a wide market at minimum cost. In addition, the customers buy or read the material posted on the internet at their own convenient time and price. Over-stock.com has a database system that aids the firm in analyzing sales over the past years. By creating effective contact with their customers, the firm is able to address its customer’s products requirements. The firm is also able to effectively identify the factors that motivate customers in the process of making purchase decisions. The firm’s management team has also instituted a comprehensive inventory management system that enables it to track its sales trend. The new data system helped them to know the strategies that they could use so as to retain their customers (Effy, 2006, p.242).
Overstock.com built a new infrastructure with a double database system of the company where the company bought a networked warehouse of the data with back up. In addition, they also used computers that were interconnected to the other seven computers. The results were a remarkable growth in sales of their products. The employee’s motivation level was also boosted (Effy, 2007, p.243). This is inadvisable since there is a probability of the firm exploiting its customer’s information which ought to be kept private and confidential.
Currently, it is possible for the executives to capture and analyze the data collected concerning their customers without disrupting other internal applications that could be running. The top management team can also be able to access information relating to their former customers and the records of what has or has not been sold (Effy, 2007, p.243). The firm can also be able to compete with an online auction leader that exists in the global market. The company can also distribute its database to seven -networked computers.
The executives will learn about what motivates customers and how pricing strategies affect their consumption decisions. For instance, the management will be able to know the buying behaviors of their customers and the factors that lead to these behaviors. As a result, the executives will acquire information related to the best method to retain the customers. For example, after acquiring information about their customers, the firm can be able to know which products result in high customer satisfaction and at what price to sell these products. In addition, the executives are also able to know which promotion technique to use and the most convenient method of supplying the products (Effy, 2007, p.242).
Reference List
Effy, OZ. (2007). Management of Information Systems, 5th edition. New York: Thomson course technology