Week 1 Part 2 Task 4: Value Chain

I have decided to open an Internet site where students can buy and sell used music CDs. The first aspect to set up would be the Internet site where the students go to see the CDs available for sale and where they can sell CDs to me to resell. The domain name would be www.CD4U.com. I would then need to arrange for a storage facility to hold the CDs during the time between my company buying them and a student purchasing. In this scenario there is no warehouse needed for raw materials because the CD are already made and have music on them. The website will be linked to the inventory of the storage facility. Anytime my company purchases used CDs, they will be added to the website and therefore linked to the inventory list. A receiving section of the storage facility would need to be set up to accept used CD we bought from students while also checking that the CDs are in working order. This receiving center will also deal with payments to students for the received items. The next component to set up would be a shipping system to send out CDs that are ordered by students.

Marketing would be done on the local level. Flyers would be placed all around campus. An ad would be placed on the school website and in any school publication (ie newspaper, magazine). My company would set up tabling on campus to advertise this company and to set up chances for students to come and sell there CDs directly to my company. We would also set up a customer service center to deal with any issues regarding customer satisfaction. This center would handle complaints regarding CDs not working or not to their liking and determine what the best decision would be to make the customer happy.