Case Study - PC World

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PC World is part of the Dixons Group (DSG International), which has more than 1,400 stores worldwide in countries including the UK, Ireland, Scandinavia, France, Spain, and the Czech Republic. It trades under a number of names including Dixons, Currys, PC World and The Link in the UK and Ireland. In other countries it is variously known as PC City, UniEuro, Electro World and Kotsovolos.

The group sells consumer electronics, personal computers, domestic appliances and photographic equipment. PC World is Britain's largest specialist chain of computer superstores and sells over 5,00 products including PCs, laptops, peripherals and software.   There are 147 stores in the United Kingdom.

PC World stores vary in terms of size and location. The Leeds store is what is known as a shed operation. That is a purpose built warehouse that tends to be a destination store for shoppers. This means that they visit the store to buy a specific item that they want rather than visit numerous similar stores comparing items.   At PC World a lot of the customers arrive at the store knowing that they want to buy an item, such as a laptop, but do not know exactly which model they want. They can compare machines and prices in the store before buying. This also gives the opportunity for sales assistants to help with the choice and advise on extras such as bags and software.

The manager at PC World Leeds is also responsible for stores in Bradford, Wakefield, Halifax and Huddersfield. He is able to influence to a certain extent what is stocked in the store. This is because he knows the area and customers. He knows what is likely to be popular at his store and what isn't.

All PC World stores will have a similar layout. The company publishes planograms of how the shelves should be laid out on their intranet. Similar goods are always placed with the most expensive item on the left working down to the least expensive on the right. Although the planograms are generally followed, store managers are allowed to be flexible. Sometimes this is a necessity if goods are delayed en route from the Far East.   As with many other stores some manufacturers pay PC World for their goods to be placed in prime spots in the store, these can be near the entrance or on gondola ends.

Costs of technological items reduce as times passes, for example the cost of an average laptop has reduced from £799 to £399 in a year. This means that to retain profit margins the store needs to refresh the items in stock constantly and ensure that it stocks the new developments and trends.   Processing speeds have not increased significantly in the last two years so customers have not been replacing that part of their equipment but they have been buying extra pieces of kit, the cost of which can be phenomenal.

Customer service is extremely important to the company. All employees start on the shop floor and then spend time in all departments before specialising in one such as: PC Clinics, Business Centre or Component Centre.   New starters at the store are not required to have any specialist knowledge as they are given full training. The company is interested in people with a good personality and who are courteous and eager to learn.   The company has an electronic learning programme PC World Academy which all employees follow. There is a map, which leads employees through various components of the learning programme that they need to complete to learn about the business. Some are downloadable workbooks others can be completed on-line.

The local store does not do any marketing itself. PC World as a whole will advertise nationally on television and in newspapers and the local stores will benefit from this.

Each PC World store is able to see stock levels at other PC World branches. This means that if a customer wants to purchase a specific item that is out of stock at one store staff can find out which stores have the item in stock and can ask them to hold it until the customer gets there. It prevents customers from making unnecessary journeys.

Stock is replenished automatically by means of Head Office checking what is sold in stores by computerised tills. It knows what has been sold and sends replacements as well as new items for sale.

In the light of bad publicity PC World has moved away from extended warranties on electrical equipment and now offer a new product : PC Performance Pay as you Go . Using this product customers are now able to subscribe monthly to cover their purchase for mechanical breakdown and breakdown due to mishaps and, if the product cannot be repaired or the appropriate parts cannot be obtained readily, it will be replaced. There is a monthly subscription plan and the customer can cancel the service at any time.

Other products that PC World offers to assist its customers include:

• PC Healthcheck - PCs are checked for viruses, cleaned and upgraded with purchased software.
• PC Healthcheck Plus 12 - offers a 24 hour, 365 days a year helpline and unlimited repairs in addition to what is offered under PC Healthcheck.
• PC Installation - covers the installation of a new PC including installing software, Internet accounts, peripherals and familiarising the customer with the product.
• Upgrade Installation - experts install new software on to customers' computers.

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