OPERATIONAL LEVEL CASE
Growing internet users
Entry: 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.
Increase active members and grow customer base. Have registered customer of 300000 members by year end 2000.
FF11 million start up capital while investment to advertising was FF2 per visitor.
Have registered customer of 300000 members by year end 2000.
Analysis of performance
Steady 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.
1. Unique Brand image
2. 500000 visits per month average
3. High start up capital and have investors' support
4. Unique services of workshop creation and group buying
5. Can help purchase rare imports and unique products
6. Let people encourage other people to buy things through group buying discount
7. Effective marketing campaign
8. Positive WOM and increasing involvement of its members through discussion and so on. Opportunities-
1. Increasing internet users
2. People are open to new ways of purchasing products
1. Channel conflicts