Research Report 2: Hardware Zone

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Leading the IT scene in both online and print bodies in the Southeast Asia region, Hardware Zone has taken huge strides in reaching its existing status as a dominant voice in the regional IT media channel. Their roots can be traced back to June 1998 when it all began as Singapore Overclockers' Group (SOG), a simple but bustling enthusiast website distinguished for dishing out scores of reviews. SOG then expanded its portfolio of services and influence by encompassing price guides, discussion forums and classified ads among many others. It was at this momentous juncture when SOG was strategically restructured and officially christened as www.hardwarezone.com in October 1999.

Hardware Zone has evolved with time and matured from a hobbyist site to a tech site that has since become synonymous with professional, unbiased and thorough reviews of products in the computer components, consumer electronics and communications segments. From a modest 5 million page views a month in 2001 to a stirring 35 million in 2005 with over 4 million unique visitors from all over the globe. Hardware Zone has also achieved 1 million unique visitors amongst its more than 35 million page views each month.

Country specific editions of Hardware Zone were launched in 2003 as a way of reaching out to their readers in the region by providing localized content and price guides that are intimately pertinent to each country of origin. Presently, Hardware Zone has its presence firmly planted in Singapore, Malaysia and the Philippines i.e.
  • SITE DETAIL

Objectives:

Their goal is to connect IT to not just to the technically-inclined computing enthusiasts, but also to IT professionals and casual consumers alike. The main reason of their success can be attributed to their principle formula of offering a broad array of engaging content and services, all of which can be relied upon in assisting readers in their next IT purchase.
  • FEATURES

Business Model
~ Information Broker (B2C)
Hardware Zone is a place where people who do research on various IT gadgets are able to post the information online for people to view. For example, comparisons between the different mp3 player models. It has a forum for consumers to compliment or criticise about various IT gadgets or even other topics related to cars, mobile phones and schools. It also allows consumers to seek help regarding any computer problem that they are unable to solve.
It also has with it links to the different sections like:
* ‘Articles’ section provides clear details about the item(s) mentioned.
* ‘Products Review’ section gives consumers a clear analysis of the pros and cons of specific products.
* ‘Tech Guides’ section provides readers with IT knowledge to educate them and interest them to find out more.
* ‘Latest news highlight’ section helps consumers to know the latest news regarding IT gadgets.

~ Online marketplace (C2C)
The site allows seller to post ads to sell IT products online. Second-hand IT products can also be purchase at a cheaper rate. E.g. iPods, mobile phones, laptops

  • PAYMENT MODES

Buyers are however, to contact sellers for payment methods which could range from cash on delivery via meet ups or bank transfers should they opt for the item to be delivered. This makes it very convenient to potential buyers without a credit card. Nevertheless, the exposure to liabilities are still at large as products can be damaged during the delivery process and potential buyers can also be easily conned into transferring funds without actually receiving the product.

  • DESIGN SCHEMES

Navigation around the website is pretty easy through clear categorisation. The images and graphics are clear and there is good alignment of fonts. However, the font size may be too small for some fussy site-goers e.g. older folks.

There is almost no broken links so site-goers have a smooth navigation throughout their experience. Links are also provided to the specific product dealers, such as Dell.com should they have any special promotions or sales. The forum and/or 'Product Review' also helps new or amateur customers to decide whether or not to purchase any particular product(s).

  • ANALYSIS

The website earns a substantial amount of money by hosting advertisements. Probably, Hardware Zone can start having their own products, and thus, sell and advertise it in the website. They can also charge a monthly fee for members who use the website to post up advertisement, in which it can be paid via either online banking or credit card.

Strengths
The site provides up-to-date news about new gadgets available in the market. Eg. Promotions, cheapest deals in town, pros and cons of a particular product etc. It is also well established site as can be seen under ‘Advertising’, the site is well-known to advertisers and this helps to boost sales.

With the availability of a testimonial directory, it allows previous advertisers to leave their comments which is very favourable. The forum, which does not just focus on IT talk, is of high assistance to consumers as they are able to post up their doubts and enquiry on purchases of any IT products and also, even on other non-IT related issues. This helps the consumers who tends to not be IT-savvy to easily voice out their concerns regarding certain specifications or aspects.

Their faithful members are also entitled to the DMCard (Deluxe Membership Card). Launched in April 2005, this unique premier membership card in Singapore offers both IT and Lifestyle privileges. Consumers can register as DMCard members to enjoy benefits such as discounts up to 15% from IT vendors across Sim Lim Square and Funan the IT Mall and also lifestyle privileges.

Clearly classified categories of products is found in the 'Marketplace' and this allows buyers to find their wanted products easily. User ratings is also available for each seller to allow buyer to know or gauge the seller's reliability. This allows people to sit back at home in their comfort zones and yet be able to shop and gather information regarding the products without having to go the various shops physically. This saves their time and cost of travel making the site environmentally friendly as air pollution and traffic congestion can be reduced since people do not need to travel to get the information that they need.

Step-by-step instructions can also be found and people can even learn how to build a computer on their own. If in doubt, all they have to do is just set up an account and ask for assistance in the forum.

Weaknesses
Apparently, there is inadequate security system for ‘Marketplace’ as sellers will simply leave their contact number for people to contact them. This may lead to unwanted disturbance or spamming by others. Personal information like address, contact number and NRIC number of individual is also needed when signing up of the membership registration and this information can actually be sold to interested parties online.

Credibility of the reviews in the forum is questioned as it can be posted by anyone regardless of one's professional qualifications or experience. Response to a questioned posted on the forum is also not certain and this is unfruitful to the member. Members too, needs to be more specific and not ask about trivial issues. And at times, they will send out spam advertisements to member’s email or unsightly pop-up ads may appear.

  • COMPETITORS

The following sites also provide a wide variety of consumer products and directory to many online shops:
- http://emall.sg/
- http://www.mallsingapore.com/
- http://mocca.com.sg/
~This is still relatively new and is trying to expand their market share by luring consumers through candid and attention-seeking ads.

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