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She’s Apples
She’s Apples
No longer is it true that the ‘Biggest’ equals the strongest, at least for the Web 2.0 based business where it can be the ‘lean’ that rises to new strengths. Starting small, when combined with some planning on how to scale, offers many advantages for the Internet start-up business. The advantages include lower upfront costs, a faster time to market and a reduced risk of product/service failure through a greater adaptability. But what happens when a conventional ‘plain old’ physical DVD hire store offers it’s customers some Web 2.0 like software to enrich their ‘DVD hire’ experience?
Applebox.com.au is the web presence for two small DVD hire stores in Melbourne. As you would expect, you can visit the website to browse a catalog of available movie titles and if you are a customer you can make an online request to ‘hire’ a film and then drop into the store to pick it up. Ok, big deal, nothing new here, the providing to customers an online catalog be it DVDs, furniture or computer components is old news and in the DVD game there are already some big players like bigpondmovies[6], and Quickflix[5].
However, even a smallish ‘physical store’ based business can achieve some of the benefits recognized as being available to the ‘internet based’ enterprise. In the case of Applebox the benefits of scalability and new partnerships opportunities apply.
Lets look firstly at the scalability options that open up as a result of the online initiative. In assessing a Web 2.0 based business we know that ‘self service’ scales. A customer that can find their own answers, or manage some aspect of the service for themselves is a customer that puts less strain on supporting resources. For the internet based business this can translate to millions of customers with very low supporting costs. For the local video store the self service model also translates to an efficiency gains. A customer that doesn’t have to wait in line during peak times is probably going to be happy customer, as is the customer that knows when they get to the store they are not going to be disappointed with not being able to find what they wanted. In addition the the self service model may reduce the staffing requirements of store operations.
Scalability is also for the future. This first step of adopting an online bookings systems is a step toward online delivery. Once we have online delivery the physical store may be more useful for storing real apples.
The second benefit is the new partnerships opportunities. We know for example in Internet based businesses viral marketing matters. For the on-line business it is essential that people find them out there in their tiny corner of cyber-space. Applebox also has to find and retain customers. Having a web based application has allowed them new partnership opportunities that were not possible before. For example there is a bar / lounge in Melbourne called Softbelly. This bar offers of all things DVD hire, guess what application they are using to do it? For Applebox this is traffic and good traffic - people looking to hire DVDs - perfect.
Applebox has done a few things really well to make themselves stand-out. Firstly the web application developed to browse the store’s catalog is very good looking and easy to use. These are important factors, Rich User Interfaces do matter in Web 2.0 applications.

Secondly they don’t want people to think they can get something that they can’t, the application informs the customer on what titles are available not just what they have on the shelf. [3]
Thirdly the use of the Application is encouraged in the physical store as well, it is not something separate. See the photo below which is a picture of the applebox’s physical store.

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References
[1] AppleBox
http://www.applebox.com.au/
Accessed: 5th May
[2] About Us
http://www.applebox.com.au/about/
Accessed: 5th May
[3] FAQ
http://www.applebox.com.au/faq/
Accessed: 6th May
[4] Apple Box
http://www.builderau.com.au/strategy/architecture/soa/Case-Study-AppleBox-takes-rentals-into-Web-2-0/0,339028264,339279487,00.htm
Accessed: 6th May
[5] Quickflix
http://www.quickflix.com.au/
Accessed: 6th May
[6] Big Pond Movies
http://dvd.bigpondmovies.com/
Accessed: 6th May











