What is a good response to... For this week’s discussion I chose to research and answer question number two. Explain why denial of service attacks are such a danger to online retailers? Denial of Service (DoS) attacks are particularly dangerous for online retailers due to their immediate and serious impact on business operations. In the case of Soap Shop, the three-day vendor website shutdown demonstrates how vulnerable e-tailers are to such disruptions. A DoS attack can incapacitate key operational components, like Soap Shop’s auction-based vendor system, which directly affects their ability to procure products. For a company utilizing a Just-In-Time (JIT) system, where inventory levels are kept minimal to reduce storage costs and increase efficiency, even a short disruption in supply chains can cause significant operational challenges (Jenkins, 2023). Soap Shop’s inability to fill customer orders due to the DoS attack highlights this vulnerability. The financial repercussions of the attack were severe. Michael, the controller, estimates unfilled orders worth $700,000, only 40 percent of which could be potentially fulfilled later. This illustrates not only the immediate loss of sales but also the long-term customer dissatisfaction that could result in loss of future business. Also, the emergency purchase of soap and lotion from higher-priced vendors, costing an extra $200,000, further intensifies the company’s financial burden. The need to increase shipping costs only adds to the challenge of maintaining profitability in such a scenario. These emergency expenditures, along with restoration costs of $220,000, significantly affect the company’s bottom line, leading to a potential decrease in the rate of return on sales, which is critical to the company’s success, especially given its reliance on efficient vendor systems for profitability (Miller, 2024). Soap Shop's rate of return on sales is likely to suffer long-term impacts. Michael projects that the company faces a 40 percent chance of a 10 percent decrease or a 60 percent chance of a 25 percent decrease in its return rate, which emphasizes the magnitude of financial damage caused by the attack. The disruption to their vendor site not only affects current operations but also poses risks to future sales performance. The competitive nature of e-commerce requires robust and reliable systems, and any disruptions to vendor procurement processes can lead to lost sales and increased operational costs, which can be detrimental to both short-term and long-term profitability (Keelan, 2024). DoS attacks represent a critical threat to online retailers like Soap Shop, primarily because they disrupt supply chains, create operational inefficiencies, and lead to significant financial losses. These attacks jeopardize a company’s ability to fulfill customer orders, maintain profit margins, and sustain competitiveness in the e-commerce space. Because of this, it’s now more important than ever to invest in cyber defenses to keep your company ahead of the criminal’s technical skills and abilities (Crumbley et al., 2017).
What is a good response to...
For this week’s discussion I chose to research and answer question number two. Explain why denial of service attacks are such a danger to online retailers?
Denial of Service (DoS) attacks are particularly dangerous for online retailers due to their immediate and serious impact on business operations. In the case of Soap Shop, the three-day vendor website shutdown demonstrates how vulnerable e-tailers are to such disruptions. A DoS attack can incapacitate key operational components, like Soap Shop’s auction-based vendor system, which directly affects their ability to procure products. For a company utilizing a Just-In-Time (JIT) system, where inventory levels are kept minimal to reduce storage costs and increase efficiency, even a short disruption in supply chains can cause significant operational challenges (Jenkins, 2023). Soap Shop’s inability to fill customer orders due to the DoS attack highlights this vulnerability.
The financial repercussions of the attack were severe. Michael, the controller, estimates unfilled orders worth $700,000, only 40 percent of which could be potentially fulfilled later. This illustrates not only the immediate loss of sales but also the long-term customer dissatisfaction that could result in loss of future business. Also, the emergency purchase of soap and lotion from higher-priced vendors, costing an extra $200,000, further intensifies the company’s financial burden. The need to increase shipping costs only adds to the challenge of maintaining profitability in such a scenario. These emergency expenditures, along with restoration costs of $220,000, significantly affect the company’s bottom line, leading to a potential decrease in the rate of return on sales, which is critical to the company’s success, especially given its reliance on efficient vendor systems for profitability (Miller, 2024).
Soap Shop's rate of return on sales is likely to suffer long-term impacts. Michael projects that the company faces a 40 percent chance of a 10 percent decrease or a 60 percent chance of a 25 percent decrease in its return rate, which emphasizes the magnitude of financial damage caused by the attack. The disruption to their vendor site not only affects current operations but also poses risks to future sales performance. The competitive nature of e-commerce requires robust and reliable systems, and any disruptions to vendor procurement processes can lead to lost sales and increased operational costs, which can be detrimental to both short-term and long-term profitability (Keelan, 2024).
DoS attacks represent a critical threat to online retailers like Soap Shop, primarily because they disrupt supply chains, create operational inefficiencies, and lead to significant financial losses. These attacks jeopardize a company’s ability to fulfill customer orders, maintain profit margins, and sustain competitiveness in the e-commerce space. Because of this, it’s now more important than ever to invest in cyber defenses to keep your company ahead of the criminal’s technical skills and abilities (Crumbley et al., 2017).
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