Business Case Analysis 'Electronic Payment Systems in Action ...

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COMPANY HISTORY AND BACKGROUND Movie Gallery, Inc. is the second largest video specialty retailer in the united state, which has more than 4,700 stores and 20, 000 associates in 50 states in US and in seven Canadian provinces and Mexico. Movie Gallery was established in 1985 by Joe Malugen and Harrison Parish in Dothan, Alabama, United States of America. At first, it only focused on rural and secondary markets areas that were typically underserved by other video retailers, notably Blockbuster Video. By focusing on rural and secondary markets, the company is able to compete very efficiently against the independently owned stores and small regional chains in these areas. Through its wholly owned subsidiary, M.G.A., the Company's founders began operating video specialty stores in southern Alabama and the Florida panhandle by franchising the Movie Gallery store concept. Movie Gallery grew through the acquisition of various mom-pop video stores. (Franchising model) but they eventually repurchased all of these franchisees. 2 Movie Gallery grew biologically for the balance of the 1980s and the early 1990s. After that, it began an aggressive growth movement in the early and mid 1990s by strengthening the fragmented video retail market through the achievement of individual video stores and small chains. Besides that, the company also continued to expand by opening several new stores in many places. 2 –(n.a), (2006), About Movie Gallery [web page], http://www.moviegallery.com/company/about.aspx, date accessed: 1 March 2006 Codewit Global Network © Copyright 2006 All right Reserved Page 4 of 42
In July 1994, Movie Gallery went public and used the proceeds of the initial public offering (IPO) and successive secondary offerings to continue its vivid expansion. From 1996 through 1998, Movie Gallery focused its attention away from expansion and toward fine- tuning internal aspects of the company. Owning to the fact that it grew through a corporation of different stores, the company focused on implementing the movie Gallery culture and philosophy. The goal is to absorb all different movie stores and differentiate Movie gallery from the other movie rental stores. 3 As Movie Gallery continued to expand and grow, it acquired stores in most of the United States. Towards the end of 1999, Movie Gallery launched moviegallery.com through a separate wholly owned subsidiary. By 2001, Movie Gallery won the honor of retailer of the year (large chain) from video software dealer Association 4 (Braxton M and A. J Strickland, 2005) Movie Gallery owned and operated stores in five Canadian provinces, which gave the company an international presence. According to Braxton M, Movie Gallery’s annual revenue by the end of 2001 had surpassed $369 million (Braxton M, 2005). It took over Video land (a video store) in the year of 2002. Moreover, Movie Gallery continues its aggressive expansion. However, Movie Gallery had not implemented any online DVD rental service, and most of its potential segment, customers are not covered but with its large and diverse geographic spread, we will introduce an e-payment technology that will suit it entry into the online rental industry. THE PRODUCTS / SERVICES 3 – (n.a), (2006), Movie Gallery [web page], http://www.answers.com/topic/moviegallery, date accessed 1 March 2006 4 Braxton M. A.J, et al., “Crafting and Executing Strategy: The quest for competitive advantage, concept & cases Movie Gallery 13 no. c-38 McGraw-Hill Irwin 14 th edition (2005) Codewit Global Network © Copyright 2006 All right Reserved Page 5 of 42
Page 1 and 2: Business Case Analysis ‘Electroni
Page 3: most of their rental services and s
Page 7 and 8: . MOTIVATION Nowadays, the moderniz
Page 9 and 10: profits and can gain back the money
Page 11 and 12: other application provided. As show
Page 13 and 14: • E-wallet payments allow for the
Page 15 and 16: analyze three e-payment systems and
Page 17 and 18: RECOMMENDED EPS SYSTEM Because of s
Page 19 and 20: sites, all of which are required to
Page 21 and 22: N: B Diagram on this page are captu
Page 23 and 24: number on your eWallet and drop it
Page 25 and 26: For the implementation of online e-
Page 27 and 28: Web security software 1000 ECML 100
Page 29 and 30: As seen the demonstrated cost of ma
Page 31 and 32: Implementing EPS for Movie gallery
Page 33 and 34: Photocopying 1,500 Administration (
Page 35 and 36: Cost price of goods sold 620,000 Gr
Page 37 and 38: 800,000 780,000 760,000 740,000 720
Page 39 and 40: Graphical analysis of Expenditures
Page 41 and 42: REFERENCES 3. Efraim, K.J., et al

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