MAC Aerospace Corporation: E-commerce, IT Infrastructure, and Long Tail Strategy

This case study explores MAC Aerospace Corporation's use of e-commerce, the risks associated with developing IT infrastructure, and the effectiveness of the long tail strategy. It also discusses the pros and cons of outsourcing and the benefits and disadvantages of using e-commerce compared to traditional physical outlets. The study concludes by examining the strategic role of IT in various industries.

CASE STUDY 2

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Overview about organization background, services and products...............................................3
Other kinds of E-Commerce different from business to business...............................................3
Risks Company need to accommodate while creating IT infrastructure they now process.........4
Effectiveness or ineffectiveness of long tail strategy...................................................................5
Cons and Pros of outsourcing in context of firm & issue of offshore outsourcing......................6
Benefits and Disadvantages for using E-commerce as compared to traditional physical outlet. 6
Examples organization for each industry in which IT play a strategic role.................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
The current report is based on MAC Aerospace Corporation in US, offering better
solutions to its clients. This study explains B2C, B2G and C2C types of E-commerce that id
different from B2B and also highlights risk company need to accommodate while developing IT
infrastructure. It justified long tail strategy, its effectiveness in context of business and other
kinds of industries might benefit from use of it. Furthermore, this assignment evaluates cons &
pros of outsourcing to firm and also define problem of offshore outsourcing. It clarify advantages
and disadvantages for using e-commerce as compared to traditional physical store and at the last
examine strategic role of IT play in multiple industries.
MAIN BODY
Overview about organization background, services and products
MAC Aerospace Corporation is similar to Kramp group as they offer support solutions
from emergency needed spare parts for military defense programmers to valuable services such
as engineering, licensing and management of overhaul & repair services (Wunderlich, 2017).
Firm is specialized in providing customized solutions to all of defense related needs from electro
mechanical and supplying structural components to offering an array of logistics services. The
mission of this company is to support to operational readiness of US and allied armed forces
through an array of logistical solutions providing. Firm focus has always been to contribute
modern and out of production aircraft. They regularly deliver a wide spectrum and well equipped
to manage the most demanding, high precision spare part necessities.
Company surpasses their competitors by helping different defense system programmes.
They caters consumes with logistical support of aircraft & superior military defense systems.
Over past 3 years, organization has established itself as a reliable provider for a broad range of
components including obsolete and difficult to find spare parts. MACs consumers include U.S
department of defense, NATO, original equipment manufacturers and most connected nations.
Through their extensive inventory, knowledgeable workers and comprehensive database, this
company has become a leader in radar system arena. Many components and parts for these
particular programmes are either in stock, can be overhauled or built.

MAC’s quality assurance section maintains an exceptional record of achievement with
United State department of defense and major OEM’s who have favorably audited firm.
Overhaul and Repair problems come with their own unique set of concerns & challenges.
Company has skilled workers whose main focus in managing overhaul as well as repair projects
from beginning to end.
Other kinds of E-Commerce different from business to business
B2C, B2G and C2C are different from B2B e-commerce, through below discussion
differences between these kinds of E-commerce is possible.
For example, in business to customers the consumers experience is usually one too many.
One people make a decision based on many varied options. Most clients purchase in same way
and follow same kinds of procedures (Nath, Saha and Salehi-Sangari, 2019). On the other hand,
Business to business purchasing experience, however are incredibly difficult and vary broadly by
sector, business operation, products and organization size. B2B consumer is often not relay buyer
at all, not in a traditional sense at least but a procurement expert recruited to execute a early
negotiated contract.
C2C is another type of E-commerce which is also different from Business to business for
example it occur when one customers sells directly to another, such as in an online sale. With
this, peoples bid on a product being sold by someone else. On the other side, in B2B e-commerce
consumers purchase a item directly from manufacturer.
Along with the above E-commerce, business to government is generally defined as
commerce between organizations and public sector. It refers to utilize of internet for licensing
processes, public procurement and other government relate operations. While in context of B2B,
manufacturer produce different business to business transaction such as glass for windscreens
and use internet not for public procurement.
Risks Company need to accommodate while creating IT infrastructure
MAC Aerospace Corporation needs to accommodate certain risks when developing
information technology infrastructure.
Lack of powerful computing platforms-

While creating IT infrastructure, company faces different risks that are lack of strong
computing sources. It is one of the major challenges in progressing processing power of
computers has been lack of space and energy to power super computers (Jobst, 2018).
Information technology managers look out for faster and better systems which will aid in faster
procedures of wide amounts of data accessible today. The best solution to this risk would be to
employ new common purpose multi core platforms or graphical procedures.
Compute provisioning and management-
Another risk accommodate by MAC Aerospace Corporation while creating IT
infrastructure is compute management & provisioning. It is quite difficult to create IT
infrastructure; workers put on efforts make it successful. High performance computing of these
wide data sets will need automation & virtualization to avoid adding more applicants to these
procedures. The major risk for IT infrastructure manager is to simply these activities and seep up
processing.
Dearth of ways to improve data analytics-
With all above risks, it is third risk firm need to accommodate when creating IT
infrastructure which may be beneficial for business or not. Currently there are not many
techniques in place which can be utilized by information technology manager to diverse quality
info from humongous data sets. It is complex to determine patterns in data but also very
important to manage each and every activities. It is also essential to correctly examine it and then
use it to take business decisions in infrastructure management.
Effectiveness or ineffectiveness of long tail strategy
Long tail is a business strategy that permits organizations to realize important profits by
selling low volumes of difficult to find products to many consumers, instead of only providing
wide volumes of a reduced number of popular goods. It may refer to a kind of liability, in
insurance sector or to tail risk found in investment portfolios (Imgrund and et.al., 2017). It
considers less popular method that is in lower demand. This strategy first coined by researcher
Chris Anderson in 2004.

In context of MAC Aerospace Corporation, Long tail strategy is quite effective and
beneficial for company as it helps to achieve business needs. By featuring a higher number of
choice of less popular markets or goods, management can reach a wide number of customers
segments than organizations focused on head of need curve. Most traditional firms concentrate
on high demand markets, services and items. By implementing and aiming toward this business
strategy, administration fulfills needs of different consumers group and face minimum
competition.
Other types of industries and businesses might benefits from use of long tail strategy, as it
help them to reach at target market without getting to much efforts because this strategy lower
down competitive threat for other companies. Typically, it is utilize by online organizations such
as Netflix and Amazon. By using this strategy Amazon can face minimum competition which is
quite beneficial for its business in term of increasing profitability, productivity and sales. When
organization faces low competition, it put positive impact on business growth and success &
makes them able to retain potential consumers for longer.
Cons and Pros of outsourcing in context of firm & issue of offshore outsourcing
Outsourcing refer to practice of business in which a organization hires another firm or an
worker to perform tasks, provide product or services and handle operations that are either
normally executed or had earlier been completed by company workers (Calbone, 2016). It
provide many benefits as help to get access to skilled applicants, better risk management and
increasing in house or operational efficiencies rather than past few months or years. It offers
staffing flexibility that is beneficial for company in term of strengthen their workforce.
But on the other hand, with outsourcing management lose some control on business
operations. It can be make recruiter unable to hire right people, they can lose control on how
staffing task is being monitored and completed in timely manner with better results. Although it
work is usually considered cheaper, with this practice manager need to be aware of getting
ripped off (AL-Alawi, 2017). When senior plan to outsource procedure that need personal data,
they could be face security risk because there is chance to leak data and stolen by other person.
In context of offshore outsourcing, it is growing more than 20% to 25 per annum, with
few evidence of slowing. Instead, while most companies experience initial resistance, technical

problems are readily resolved and geopolitical challenge is deemed insignificant after careful
monitoring. The key problem in offshore outsourcing is culture differences that impact on
productivity and profitability level of company more than before that is really not well.
Benefits and Disadvantages for using E-commerce as compared to traditional physical outlet
While setting up online business e-commerce will be beneficial in term of increasing
productivity and business growth rather than before. It is quite effective and useful way most
online organizations can use to gain success and progress more than competitors instead of using
traditional physical store (Mutuku, Muathe and James, 2019). As it help management to sell
more and more products by using range of online methods available in market place. It aid to
faster selling and buying process as well as make easy for consumers to find specific item on
website without taking too much time, they can spend on outlets. E-commerce helps a lot in
growth and long term success of firms such as Amazon and other. It makes businesses capable to
reach to modern consumers, without facing theoretical geographic limitations.
But on the other hand, E-commerce brings many challenges that directly impact on profit
margin and sales of companies as there are many bad sites which may be gain the attention of
potential client’s money. There is no guarantee of item quality that affects customer value and
trust (Mutuku, Muathe and James, 2019). As compare to physical outlets, most people feel more
safe because it make them capable to check the quality of goods and then they can purchase after
having complete satisfaction. While using E-commerce management was unable to directly
communicate with its target market as they cannot deal with their issues regarding products and
its quality.
Examples organization for each industry in which IT play a strategic role
Retail, fashion, finance and health & social care are the examples of different types of
industries, all operating their business with skilled and talented applicants in effective manner. In
recent time, each company or industry used IT that play vital role by providing a chance to gain
competitive advantages and adding more value through innovative application of Information
technology. Woolworth run and operates their business in retail industry where they can use IT
that plays strategic role by making their venture stronger than its competitors. Information
technology provide many benefits as it helps to fosters innovation in company as outcomes in
smarter application, faster production procedures, improved data storage and wider info

distribution. Furthermore, it can be said that more organizations in other sectors uses IT which
play important role like in other industries companies. Google also used information technology
which is quite beneficial for its business growth and help by increasing profit margin. In context
of investment companies, IT not play strategic role as they are unable to get success with
Information technology which directly impact on sales and revenue.
By using IT systems, many firms get success such as Google, Amazon and other that is
really very good for them.
CONCLUSION
From above analysis, it has been concluded that MAC Aerospace Corporation is capable
to survive in market place for longer by offering appropriate and effective solution to its
consumers. Business to Business e-commerce it quite different from other types of E-commerce
as it deals direct to companies or distributors for selling products to buyers. Furthermore, it has
been summarized that long tail strategy provides benefit to company by reducing threat of
intense competition in market. Outsourcing is beneficial in term of generating sales, growth and
productivity for organization. It has been determined that Information technology enhances
performance level of business by innovating something new and unique from other firms.

REFERENCES
Book and Journals
AL-Alawi, H.S., 2017. Pros and Cons of Information Technology Outsourcing. International
Journal of Communication and Networking System. 6(1). pp.50-53.
Calbone, A., 2016. The pros and cons of outsourcing housekeeping positions. The Rooms
Cronicle, 19(1).
Chae, H.C., Koh, C.E. and Park, K.O., 2018. Information technology capability and firm
performance: Role of industry. Information & Management. 55(5). pp.525-546.
Imgrund, F and et.al., 2017. Managing the long tail of business processes.
Jobst, A.A., 2018. Credit risk dynamics of infrastructure investment: considerations for financial
regulators. World Bank.
Kbilashvili, D., 2018. Influence of E-Commerce and Cryptocurrency on Purchasing Behavior of
Wine Customers. Global Journal of Management And Business Research.
Mutuku, M.K., Muathe, S. and James, R., 2019. Mediating Effect of Competitive Advantage on
the Relationship Between E-commerce Capability and Performance: Empirical Evidence
from Commercial Banks in Kenya. European Journal of Business and
Management. 11(17). pp.48-57.
Nath, A., Saha, P. and Salehi-Sangari, E., 2019. Blurring the borders between B2B and B2C: a
model of antecedents behind usage of social media for travel planning. Journal of
Business & Industrial Marketing.
Wunderlich, B., GULFSTREAM AEROSPACE CORP, 2017. Work piece holder and method of
using a work piece holder to support a work piece. U.S. Patent 9. 669. 519.