The Casa del Libro case is polarized in two extreme possibilities: maintain and redesign the platform that were acquired vs. develop a new and cheap platform.
Well, does it make sense to keep investing in a costly and hard to deal with platform, complex integrations, adaptations, training the personnel, or, instead, just forget it and start everything from scratch?
To evaluate the alternatives we should consider the following:
(1) Casa de Libro reputation: the store cannot compromise its reputation, earned over all these years in the business, by the use of a poor sales channel.
(2) the time to develop and test the new sales channel. It should consider the time necessary to train personnel.
(3) time frame that the system can be used, i.e., how long the system can be used for without becoming outdated.
In my opinion, it would make more sense to invest in the cheaper system. Specially because within a couple of years the system will be obsolete and, consequently, the company will have to invest in a new type of technology.
Imagine if the company has opted to carry on with the previous system. More financial resources would be spent for something that will be outdated the same way.
In conclusion, before betting entering in the internet book selling market, the company has to make a risk assessment about to where the book sales is going, how to face competition from other companies that have been on line already. Once the decision to sell books on line is taken, the company should perceive a system less coslty, easier to implement, easy to deal with, easy to up date, even if this means to incurre losses from past investments made on the past.
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