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What Should We Do Now?

In:

Submitted By nikko8990
Words 789
Pages 4
To: Dante Sorella, CEO, Raydar Electronics
Date: 25 April 2012
Subject: RFID Tags in Caps/Visors

In regards to the implementation of RFID tags in the caps and visors, its strategic and ethical concerns, and proposed solutions, we are advising that Raydar should join in KK Inc.’s interest in tagging their caps and visors. However, much attention must be given to ethics and possible government regulations. Our analysis has factored in Kool Kid Inc.’s desire for an authentic brand and superior customer experience with Raydar’s current capabilities and future goals. We understood the strategic and ethical concerns to be as followed:

• Ethics.

o Internal and external individuals may question the ethics of tagging children’s clothing

• Government Regulation.

o Possible congressional bills restricting the use of RFID in clothing and requiring full disclosure with the use of RFID may be passed.

• Reputation.

o Possible tarnishing of the Raydar brand as a result of consumer privacy concerns may occur.

• Financial Cost.

o Research and development costs.

o The cost to profits if a strong competitor enters the market.

Value Control

Much attention must be given to the protection of the customer and his/her private information. The following areas must be addressed to help ensure the success of the RFID tagging project, they are:

• The database of customer private information. We suggest Raydar collects and holds the customer information and licenses it to KK. Raydar will have complete control over the information and can make certain it is handled properly.

• The educating of KK’s customer base about RFID and their information. We suggest KK’s customer base is fully educated on the privacy policy regarding their information and the RFID technology.

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