Cases on Information Technology Series

34 Tan & Tanincomprehensive (i.e., desired product not listed) or outdated (i.e., product prices not upto-date).Second, there was a need for comprehensive reviews of local IT products. The needsof local DIY computer enthusiasts were not met sufficiently by foreign IT publications,as their content is generated and targeted at the global audience (e.g., product reviewedmay not be available locally) and may be irrelevant in the local context. Local ITpublications also were inadequate, as the quality and quantity of product reviews oftenwere lacking.Based on this analysis, Hardwarezone quickly positioned itself as a provider of upto-dateprices of local IT products as well as a provider of comprehensive local productreviews, benchmarks, and compatibility reports, based on product tests conducted in itsown test labs to cater to the needs of local DIY computer enthusiasts. This significantlyreduced the amount of time and effort they spent physically visiting each store in orderto obtain the required information.During this period of boom and opportunities, Hardwarezone used several keymarket strategies with a strong emphasis on establishing market presence and credibilityfor its Web site.One of its key strategies was to broaden its target market. The SOG, predecessorof Hardwarezone, targeted the PC overclockers (computer enthusiasts who were interestedin overclocking their CPUs) market segment. By broadening its focus to IT productsreviews, news, and prices, Hardwarezone broadened its market focus to encompass firsttimecomputer builders, independent computer assemblers, and hardware enthusiasts.Second, in order to distinguish itself from other existing online IT publications,Hardwarezone established hardware testing labs to generate its own product reviews.Thus, content generated by Hardwarezone was 100% proprietary. Its content also wasgenerally perceived as more creditable, because all product reviews were created bygenuine content authors, and more relevant in the local context, since testing was doneonly on products available in the local mainstream market.Next, in order to establish its market presence firmly, members at Hardwarezone werenot charged fees for the information they accessed. Its main source of revenue was fromonline advertising.Another key strategy they used to establish market presence and credibility wasthe formation of strategic partnerships with local IT vendors. In order to obtain the latestIT product prices and information regarding their availability, Hardwarezone formedpartnerships with many local vendors in Sim Lim Square, the biggest IT retail mall inSingapore, and offered publicity in exchange for information that Hardwarezone required.As a result, Hardwarezone was able to enhance the timeliness of their product informationby updating their Web site on a daily basis.Last and most important, Hardwarezone undertook extensive measures to nurturea strong sense of community among their users. First, management sought to enhancethe interactivity of its discussion forum by replying directly to any user query. Second,social gatherings such as outings and barbecues were organized to add a physicaldimension to the communities. Last, management identified key forum contributors andopinion leaders and invited them to the office for tea. Freebies such as t-shirts and forummoderator privileges also were handed out to ensure their loyalty to Hardwarezone. Thislast strategy, as the management of Hardwarezone found out later, proved to be animportant foundation upon which future strategies and success were built.Copyright © 2006, Idea Group Inc. Copying or distributing in print or electronic forms without writtenpermission of Idea Group Inc. is prohibited.