Marketing Case Study On Clust.Com, An E Business Company, 3 Strategic Alternatives With Swot, Porter's Five Forces Provided.

779 words - 3 pages

OPERATIONAL LEVEL CASESituation AnalysisEnvironmentGrowing internet usersEconomical trendIndustryEntry: High, it's easy to start a web-based company. Low capital cost is required.Substitute: Moderate, group buying and creation workshop is a new market. People can buy their products but to the extent where it can be discounted and unique.Competition: Moderate, although there is heaps web-based selling business. The uniqueness of group buying and creation workshop has only a moderate amount of players.Supplier: Power of supplier is relative moderate.Buyer: Power of buyer is moderate.FirmObjectivesIncrease active members and grow customer base. Have registered customer of 300000 members by year end 2000.Financial conditionFF11 million start up capital while investment to advertising was FF2 per visitor.Marketing strategyObjectivesHave registered customer of 300000 members by year end 2000.Analysis of performanceSteady increase of visitors and new members to the website. The new member base increased 3.5 times from Jan 2000 to Jun 2000 and from 2469 to 8662.The number of visitors also increased from 77383 to 480309 which is a 6.2 times increase.However the number of times the pages in the website viewed by visitors has decreased from 4.9 times per vistior to 2.8 times per visitor.SWOTStrengths-1. Unique Brand image2. 500000 visits per month average3. High start up capital and have investors' support4. Unique services of workshop creation and group buying5. Can help purchase rare imports and unique products6. Let people encourage other people to buy things through group buying discount7. Effective marketing campaign8. Positive WOM and increasing involvement of its members through discussion and so on. Opportunities-1. Increasing internet users2. People are open to new ways of purchasing productsWeaknesses-1. Channel conflicts2. Limitation to group buying solutions3. Creditability, may not always satisfy costumers Threats-1. Competition lower profit margin2. Other different ways of purchasing productsProblems found in situation analysisStatement of primary problemAfter the interesting launch strategy, the web site comes short of breath. Two pathways are outlined (focus on group-buying and good deals vs. focus on consumer creation and exclusives or remain the same to have both). But the problem is which one to take?Evidence of problem"Palix believed that two board alternative paths were conceivable: Clust could focus purely on group buying, or it could broaden the website's offerings, with less emphasis on getting consumers a low price."Effects of problemBy...

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