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Data Warehousing at Rei - Understanding the Customer

In: Business and Management

Submitted By JaeYoung
Words 348
Pages 2
· REI? Recreational Equipment Inc. is a consumers“ cooperative specializing in the sale of sporting goods and outdoor equipment.
1. What is a data warehouse and why is REI building one?

· A data warehouse is a process for storing and analyzing data.
· This system allows organization to collect large amounts of data from its many different parts.
· This data can then be converted to information used to help satisfy customer needs and wants.
2. What are some of the disadvantages of consumer cooperatives compared to ‘traditional’ firms?
· Members rarely benefit from company’s financial success.
· All member are allowed to help manage the company.
· Ultimately, Coops aren’t as profitable as traditional firms.
3. Describe some of the marketing strategies that REI’s data warehouse will allow it to use. Would these have been possible before the data warehouse was built?
· After buying a certain product (such as a snowboard), REI can then send emails or advertisements pertaining to that particular product to the customer (snowboard accessories, snowboard places nearby, etc.)
· When searching for products on REI’s website, the data warehouse is able to analyze what items are viewed and send advertisements to the person viewing the items regarding discounts or events about those items.
· When REI holds events for certain sports, equipment, or products, REI uses the list of attendees to send them advertisment surrounding the event.
4. What are some of the risks or concerns surrounding the creation of a data warehouse?
· Data warehousing often requires a company to outsource its data, which creates security issues.
· Data warehousing can be costly, and may not be worth the expense if underutilized.
· General difficulty of consolidating data from different customers in different locations.

5. Why do you think REI chose to work with IBM’s data warehouse…...

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