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What is a Data Warehouse and Why is REI Building One - Case Study Example

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This paper tells that a data warehouse is a sophisticated system that gives different types of information about customers in a particular company. REI is building a data warehouse since it hopes that this will allow the company in identifying…
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What is a Data Warehouse and Why is REI Building One
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What is a Data Warehouse and Why is REI Building One

Download file to see previous pages... One of the disadvantages of the consumer cooperative is that it sells goods at a lower cost as compared to the traditional model where goods and services were sold at a higher cost that customers are willing to pay. The other disadvantage about consumer cooperatives is that there is a mutual benefit between the customers and the company. The company, therefore, benefits less from the sale of its goods and services.
The marketing strategies that REI’s data warehouse allows the company to use different types of information to better serve its customers. This is also through the help of IBM which will help in identification of outdoors activities that their customers are involved in. there is also the use of IBM’s DB2 9 Viper technology which will help in running REI’s marketing campaigns.
Some of the risks surrounding the creation of a data warehouse include the reduction of cost to customers and the payment of a lifetime membership. REI is committed to getting people outside and enjoying recreational activities. It also helps in getting people off the couch into outdoors with the help of data warehouse technology. Jones (2007) describes that the risks involved with the creation of a data will be that some of the customers may not be willing to disclose their daily activities or their outdoor activities. The creation of data warehouse is effective to the customers as there is privacy and every customer is able to view their profile and the activities they have been involved in outdoor recreation.
I think REI chose to work with IBM’s data warehousing technology because it is more sophisticated and this will enable the company to achieve its vision which includes educating, inspiring and enabling members in enriching their lives through outdoor recreation. IBM’s technology is also effective in a way that it allows each customer to log in and serve up contents customized to them only. ...Download file to see next pagesRead More
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