Migration to Internet Distribution for Movie Rentals

Paper Summary:

This paper is a case study involving the introduction of a new channel of business to Gripping Stuff Entertainment. The case study introduces online distribution of the product while maintaining the loyalty of the existing customer base and then increasing its size through implementation of a loyalty scheme.

Table of Contents:

Project Overview
Management Summary
Introduction
Migration Issues
Encouraging Customers to Utilise Internet Rentals Over Traditional Rentals From a Physical Store
Increase Existing Customer Loyalty to the GSE Brand Despite the Changing Channel of Distribution
Grow the Core of the Business by Increasing Market Penetration/Customer Base
Costs and Delivery Time-Frame
Periodic Updates for Senior Management and Other Stakeholders
Conclusion
Appendix A

From the Paper:

"Gripping Stuff Entertainment (GSE) is an entertainment service provider specialising in movie rentals. Traditionally distribution of videos and DVDs was accomplished via the GSE stores from which they were rented. Senior management has recently decided to migrate from the traditional distribution system to an online version in order to reduce costs resulting from physical storefront rentals and maintenance and also in order expand the customer base. A very real risk is that existing customers will be drawn over to competing home entertainment providers while GSE implements this migration. In order to mitigate this risk and also to increase general customer loyalty to the GSE brand, a loyalty programme will be launched and integrated with the new internet distribution channel. Offering loyalty incentives to those customers who choose to utilise the internet mode of distribution will increase internet sales penetration of the market while increasing overall loyalty to GSE."

Sample of Sources Used:

• Gelinas, U.J., Sutton S.G. and Oram, A.E. (2001) Accounting Information Systems, 5th edition, South Western.
• Kontzer, T., "Hollywood goes Internet". Accessed at http://www.informationweek.com/story/IWK20011108S0015 on 5/11/03.
• Lawrence, E., Corbitt, B., Fisher, J., Lawrence, J., Tidwell, A. (2000) Internet Commerce-Digital Models for Business, 2nd edition, John Wiley & Sons Australia.
• Ochiva, D., "Fields and Frames". Accessed at http://millimeter.com/ar/video_fields_frames_46 on 8/11/03.
• Pfleeger, S.L. (1998) Software Engineering, 2nd edition, Theory and Practice, Prentice Hall.

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• Case Study # 91350 : "Migration from Traditional to Internet Distribution"
• Article Review # 120828 : "Internet Distribution"

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