Situational Analysis
Overview
Egghead Software is in its twenty-first year of existence, beginning as a retailer for computer software products. Realizing the booming growth of e-commerce, it moved its business to the internet, transforming to Egghead.com in 1998. Egghead.com's focus is on selling refurbished computer hardware and software, as well as new products to small and medium sized businesses. Egghead's competitive advantage is the choice it allows for consumers to purchase computer products at a flat price, or in an online auction. In 1999, Egghead.com realized over $5 000 000 (U.S.) in year-end sales. The current issue that Egghead management is facing is how to deal with customer backlash, and continue to build consumer confidence after a security breach.
SWOT Analysis
Egghead.com has the following strengths that will help Joanna Hartzell to face this security problem:
‚ Brand recognition is a strength of Egghead.com as a strong name will attract more customers.
‚ A wide range of original products and services. This is a strength since a unique product creates brand loyalty, and makes it more difficult for competitors to create their own version.
‚ Low prices and leading technology are strengths of Egghead.com because they practically eliminate competition by creating high quality products and services and offering them at a very reasonable price.
Also, Egghead.com had the following weaknesses that can make the situation more difficult for the company:
‚ Their large customer base is a weakness of Egghead.com since the large number of customers is exceeding the company's capacity. Egghead.com is unable to provide the protection needed for their customer's personal information.
‚ A deficient security system is another w ...