This report discusses the crash of the Myer website in 2013 and its impact on the business. It explores the background of the company, the problems faced by the online shopping store, and provides recommendations for preventing future issues.
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Running head:MYERS ONLINE SHOPPING DISASTER Myers Online Shopping Disaster Name of the Student Name of the University Author’s note
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1MYERS ONLINE SHOPPING DISASTER Table of Contents 1. Introduction..................................................................................................................................2 2. Discussion....................................................................................................................................2 2.1 Background of the Company.................................................................................................2 2.2 The Problem within the Online Shopping Store....................................................................3 2.3 Failure of the Business of Myer.............................................................................................3 2.4 Analysis over the Situation Faced by Myer...........................................................................5 3. Conclusion...................................................................................................................................6 4. Recommendation.........................................................................................................................7 References........................................................................................................................................8
2MYERS ONLINE SHOPPING DISASTER 1. Introduction This report is based on the website of Myer, which had crashed in the year 2013 due to some technical problems. Myer is considered as one of the biggest cosmetic retailer in the region of Australia. The business of Myer is mostly supported by various cosmetic suppliers through the process of markdown funding, marketing, staffing support and other cosmetic counter fit-outs. The downtime of the website of Myer had created different kind of problems. It not only affected the online shoppers but was a huge loss for the owners of the company (Delimiter 2019). The revenue of the company had dropped suddenly, which was also considered as the most effective disaster to the company. This report focuses on the background of the company, the problem that occurred towards the company and the possible recommendations that could be supported in order to prevent such kind of future issues. The recommendations drawn would be useful for enhancing the business structure and ensure a successful marketplace for the company. 2. Discussion 2.1 Background of the Company Myer is the largest store retailer department in Australia. It holds 67 stores across the entire country. In the recent years they have also planned to expand their growth by increasing the number of stores in Australia. The retail sector comprises of the largest number of private sectoremployees.Thisconsistsof13,000membersintheteamintheentirecountry (Myer.com.au 2019). They have also planned to employ more than 2500 new members within the team in order to support to the growth of their present business. The workforce of the company comprises of 80% of female members within the team.
3MYERS ONLINE SHOPPING DISASTER 2.2 The Problem within the Online Shopping Store The retail sector that also has their presence in the online world has been reported to have failed miserably to keep their online presence as secure as needed. In the previous years, it has been seen that there have been massive failures that has devastated the online shoppers and have also made a huge loss towards the business (Rosenmayeret al.2018). The worst of the online disasters happened when the website was hit badly in 2013. In this year, the website of Myer had crashed at the worst possible time. It happened during the Boxing Day Sales. During this time, nearly 7000 shoppers were simultaneously accessing the website and this resulted the website to struggle and provide efficient service to each of the users. There was a programming glitch, which was the primary result that had affected the communication of the website with their internal servers. The crash of the website had further resulted in incomplete transactions by the customers (Mail Online 2019). Hence, it was ordered by the CEO that the website should be taken down for maintenance purpose. During this process of maintenance, the website was mainly forced to remain in an offline mode for a few days. This further escalated the issue as partner stores had taken advantage of the downtime of Myer to regain their sales operations. 2.3 Failure of the Business of Myer After the crash of the website, it had left the online shoppers to be angry as they could not complete the transactions and also could not purchase anything from the website. The business owner of the company was also disappointed about the recent technical difficulties that was faced by Myer. During the maintenance of the website, Myer had pumped millions of dollars for the purpose of improve the functionality of the website (Gleeson 2014). They had also ensured
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4MYERS ONLINE SHOPPING DISASTER that online sales functions should be further improved as the company was gaining a huge base of customers. In spite of boosting enough efforts into technical aspects, Myer had mostly suffered technical problems in different busy periods. Heavy customer traffic had mostly triggered to the website failure for more than half an hour during the annual stocktaking sale (Kiu and Lee 2014) Myer has mostly tied their business partnership with IBM who is responsible for handling the technical issues (Frost and Laing 2017). The company officials have always claimed that the website had mostly crashed due to software errors. During the Boxing Day Sale, when the website had crashed, it was announced by Myer that they are in the process of rebuilding the website. The online store of Myer is mainly powered by IBM WebSphere software (Yaeliet al.2014). After the crash of the website, the CEO of the company had reported to Fairfax Media that the internal IT team was in the process of working furiously with the IBM staff within Australia (Desmondet al.2014). Their main aim was to rebuild the website and look into the critical technical issues that are faced. It has been reported in the media that Myer faced repeated online disaster and system crashes in every consecutive six months of usage (Ingham, Cadieux and Berrada 2015). In November, the company had partnered with various other retailers to duplicate the massive sales of Cyber Monday within USA. On the final day of sales, the website could not accomplish with the huge traffic of users and thus resulted in huge failure (Craik 2015). It thus resulted in savage online attacks from the customers who were affected during the crash. In June 2013, the company again witnessed a breakdown of the website for a time period of 30 minutes before the sale could start (Chenet al.2016). The reason was the same as the previous one. It could not cope up with the huge amount of customer traffic.
5MYERS ONLINE SHOPPING DISASTER 2.4 Analysis over the Situation Faced by Myer After a proper analysis over the situation faced by Myer, it could be discussed that although the website could be rebuilt and the systems could be taken into control, it would be a great loss towards the company. The company would miss the various opportunities that could otherwise be taken care off if there would had been a huge profits towards the company (Bajwa et al.2017). In the highly competitive market, the critical faults could leave a loss towards the reputation and online presence in the market. The extended downtime of the website was not only a fault of the server capacity but it could also lead to security issues. The chief executive had decided to scrap postage fees and again boost the number of online offers that could help them in regaining their foothold over the online market (Tan, Benbasat and Cenfetelli 2016). It was reported by the company that the communication breakdown was mainly due to internet servers and a particular software application that are considered as the root cause of the problem. As most of the customers had left their transactions to be incomplete, the company had decided to rerun the Boxing Day stock sale offer. They also offered a certain period of additional offers and free delivery service. With these kind of innovative offers, the company had tried to gain the attention of their customers (Xuet al.2017). They also ensured that such kind of bugs within the system would be removed within the shortest possible time in order to regain their business foothold and also ensure that such kind of issues would not happen in the future. With the huge number of failuresthat are affecting to the website, it should be the primary responsibility of Myer to change or redesign some measures that could be effective in building up a strong solution for the business (Wang, Hsu and Chih 2014). Customer complaints are not limited to only systems crashes but they range into a large number of issues (Byrne and Shepherd 2015). This include the facts that they cannot log in to their special webpages, make purchases as
6MYERS ONLINE SHOPPING DISASTER their payments cannot be processed fully. Further analysis over the issue has resulted to the fact that the internal software errors was due to programming glitches that have a major impact over the website to get crashed (Coteanu 2017). IBM should take the entire responsibility to redesign the structure of the website and implement the best kind of technical qualities that would be helpful for the website to regain their proper status. 3. Conclusion From the discussions supported in the report over the crash of the Myer website, it could be concluded that the website crash was a major issue. This issue had been raised due to some programming glitches that had occurred within the website. The company should hold the entire responsibility to ensure that their consumers would be provided the best kind of facilities during such kind of incidents. In this particular case study, it has been focused that the crash of the website had led to serious implications over the business and had also resulted to loss in the revenue of the business. During the downtime of the website, there was a lot of opportunity for partner retail companies to regain their sales and thus gain the attention of customers. Such kind of incidents during the rush hours could prove to be vital for the business of the company. The reputation of the company could be put at stake during such kind of incidents. It was also reported in the media that people from all over Australia were expecting to purchase their favourite products from Myer after they would have relaunched the website. Although the website could be relaunched for the users but they still would need to redesign their website so that they would not face any kind of future problems. Hence, they should implement the best kind of technical strategies, which could be helpful for the company to regain their previous status and thus help them in gaining a massive foothold in the highly competitive market.
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7MYERS ONLINE SHOPPING DISASTER 4. Recommendation Based on the discussed scenario, it could be recommended that Myer should massively focus on the technical aspects of their website. They should implement the best possible technical strategies that could be put together to rebuild the website and thus ensure that the website would be able to hold the massive amount of traffic. The company should make use of the latest agile methodology of software development to rebuild their website. The web technologies that are presently been used by the system should be completely restructured and thus they should ensure that the present system should be able to hold the massive number of service requests at a single time when a huge number of shopper would place their request. The security aspects of the website should also be taken care of. Hence, they should also imply the best form of encryption standards that would be helpful for the business to ensure that the customers would be able to purchase products in a smooth process.
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9MYERS ONLINE SHOPPING DISASTER Gleeson, J., 2014. Can online groups ever “change” anything? A case study of the “Sack Vile Kyle” campaign.Victoria,9, p.11. Ingham, J., Cadieux, J. and Berrada, A.M., 2015. e-Shopping acceptance: A qualitative and meta-analytic review.Information & Management,52(1), pp.44-60. Kiu, C.C. and Lee, C.S., 2014, December. Readiness of Malaysian e-commerce companies to harness Web2. 0's competitive advantage: An engineering management approach. In2014 IEEE International Conference on Industrial Engineering and Engineering Management(pp. 1046- 1050). IEEE. Mail Online. (2019).Myer stocks plunge to lowest price EVER on January sales disaster. [online]Availableat:https://www.dailymail.co.uk/news/article-5370471/Myer-stocks-plunge- lowest-price-sales-disaster.html [Accessed 31 Mar. 2019]. Myer.com.au. (2019).MYER | Shop Fashion, Homewares, Beauty, Toys & More. [online] Available at: https://www.myer.com.au/ [Accessed 31 Mar. 2019]. Rosenmayer, A., McQuilken, L., Robertson, N. and Ogden, S., 2018. Omni-channel service failures and recoveries: refined typologies using Facebook complaints.Journal of Services Marketing,32(3), pp.269-285. Tan, C.W., Benbasat, I. and Cenfetelli, R.T., 2016. An Exploratory Study of the Formation and Impact of Electronic Service Failures.Mis Quarterly,40(1), pp.1-29. Wang, K.Y., Hsu, L.C. and Chih, W.H., 2014. Retaining customers after service failure recoveries: a contingency model.Managing Service Quality,24(4), pp.318-338.
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10MYERS ONLINE SHOPPING DISASTER Xu, X., Wang, X., Li, Y. and Haghighi, M., 2017. Business intelligence in online customer textualreviews:Understandingconsumerperceptionsandinfluentialfactors.International Journal of Information Management,37(6), pp.673-683. Yaeli, A., Bak, P., Feigenblat, G., Nadler, S., Roitman, H., Saadoun, G., Ship, H.J., Cohen, D., Fuchs, O., Ofek-Koifman, S. and Sandbank, T., 2014. Understanding customer behavior using indoor location analysis and visualization.IBM Journal of Research and Development,58(5/6), pp.3-1.