Should HBC Digital prioritize expanding its online marketplace selection or focus on improving the user experience of its core department store brands' websites?

Introduction

The trade-off we're examining today is whether HBC Digital should prioritize expanding its online marketplace selection or focus on improving the user experience of its core department store brands' websites. This decision is crucial for HBC's digital strategy, balancing growth through product diversity against enhancing the core shopping experience. I'll analyze this trade-off by considering business objectives, user impact, technical feasibility, and resource allocation.

Step 1

Clarifying Questions (3 minutes)

• Based on recent retail trends, I'm thinking HBC might be facing increased competition from pure-play e-commerce players. Could you share how our online sales have been performing compared to our brick-and-mortar stores over the past year?

Why it matters: Helps understand the urgency of digital transformation Expected answer: Online sales growing faster but still smaller than physical stores Impact on approach: Would influence resource allocation between marketplace and core website improvements

• Considering user behavior, I'm assuming we have data on customer satisfaction scores for our current websites. Can you tell me what our Net Promoter Score (NPS) looks like for our digital platforms?

Why it matters: Indicates whether UX improvements are critical Expected answer: NPS is below industry average Impact on approach: Low NPS would prioritize UX improvements

• Looking at our technical infrastructure, I'm thinking about scalability. How integrated are our current systems between the marketplace and core brand websites?

Why it matters: Determines feasibility of rapid expansion or improvement Expected answer: Moderate integration with some legacy systems Impact on approach: High integration would favor marketplace expansion, low integration would prioritize core website improvements

• Regarding our team structure, I'm curious about our current capabilities. What's the composition of our digital team in terms of marketplace management versus UX/UI specialists?

Why it matters: Influences speed of execution for either option Expected answer: Team is balanced but slightly more marketplace-focused Impact on approach: Would help determine if we need to hire or reallocate resources

• Considering our strategic roadmap, I'm wondering about our timeline for digital transformation. Is there a specific revenue or market share target we're aiming for in the next fiscal year?

Why it matters: Aligns decision with overarching business goals Expected answer: Aggressive growth targets set for digital channels Impact on approach: Would influence the balance between short-term gains and long-term improvements