Nine Lives Case Analysis

Essay by jspark17University, Master's July 2004

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Nature of Nine Lives' business and its critical success factors:

Nine Lives is a pre-owned clothing consignment store. It deals with high quality clothing that is newly cleaned and look good as new. The customers of this store are those who want to find a better price on expensive clothing, most likely middle incomers, who are sensitive to price and who need expensive clothes to show-off in public. The factors such as size, style, and quality status and customer service might affect the buying decision.

Nine Lives split the proceeds 50:50 with consigners to get a gross margin of half of the selling price. To be successful in this business, Nine Lives must effectively reach the consigners who want to sell and the customers who want to buy the high-quality clothing at a low price, and provide an efficient service.

Functions and advantages provided by Nine Lives Web Server:

The Web Server provides information of current inventory, gathers the queries from prospect customers and match requires and supplies.

The Web reduces the cost of monitoring inventory and makes it easier for the user to find out if desired item is available. The Web also helps to provide a premium service. When the conditions are suitable the Web can be easily expanded to financial transactions over the Internet.

The role of the Web site:

The Web site was originally established to provide information to the customers. It helped to increase Nine Lives' sales, because the customers can easily find their desired items through the Web and at least some customers were attracted to the store by the information on the Web site.

How to advertise the Web site:

They can advertise the web site on News papers, periodicals or hand out introducing papers to potential customers, or...