Mountain Equipment Mec Case Study

Mountain Equipment Co-operative (MEC) is a company that sells high-quality outdoor equipment for all types of activities. The company established in the 1960’s started with a store in the United States but later after trouble with the Canadian Customs, felt it needed to move to Canada. Upon moving to Canada the company began establishing physical locations in specific locations across the country such as Calgary and Vancouver. Expansion was needed for the company to address other customer markets therefore resulting in the expansion of existing locations and the introduction of new locations in the Parries and Toronto. Along with changing the sizes and location of the stores, the company was forced to change their hours as the consumer reaction …show more content…
Due to their segmentation they need to create a website that is designed to work for all types of people with different experience in online shopping. MEC faces a technological barrier with their retired segment, between the ages of 50-60, because of their lack of knowledge with computers. MEC will need to ensure that the layout of the website is simple and easy to use in order for these target customers to have an enjoyable experience. It is especially important to not exclude this segment from the website because they are the market that purchases the most expensive brands. Another obstacle faced with this market is the lack of trust in security over the website. 77% of people over the age of 50 do not feel safe when buying goods online. (Pipkin, 2014). In order to ease their concerns, they must incorporate multiple eCommerce security measures like encryption and HTTPS. As well, they need to incorporate badges throughout their site that reinsure to their customers that the site is safe for online transaction (McAfee, TrustE, or COMODO). Another way to combat payment concerns is to offer alternative payment methods, giving their consumers payment options such as; PayPal, Visa Checkout, and online banking. These are important in attracting shoppers who are afraid of eCommerce because it gives them a sense of security seeing other trusted brands endorsing the …show more content…
There are many advantages towards a brick-and-mortar operation or an ecommerce strategy. One advantage is authenticity. Usually in the case of e-businesses, customers may decide not to purchase from a site due to a fear in the sites lack of security measures to protect their personal information. Customers fear giving up their credit card information and other data in fear of it getting into the wrong hands. However, customers are more willing to trust a physical brick-and-mortar location. Having a place those customers can walk into and see the legitimacy of the company’s operations helps as well. Another advantage for brick-and-mortar stores is that customers can come in store and purchase/ try on a product. Rather than deciding not to purchase in fear of it not being what you expected or the size begin to small etc. However, in the case of Mountain Equipment Co-op opening other brick-and-mortar operation will be a lot more costly. Costs associated with opening another a brick-and-mortar location include hiring companies to do market research for potential locations, rent, set up costs, renovations, and the long hours that must be paid to do so. This is where e-commerce strategies thrive. E-Businesses have lower start-up costs and give the company the ability to reach customers around the world. In the case of Mountain Equipment Co-op, an