In February 2002, eBay paid 950 million to acquire Taiwan’s largest auction site Ubid and Bid, and then changing the name to Taiwan eBay in June 2002. However, a few months later, the company failed because the system of eBay did not fit in Taiwan and they could not compete the market share with Yahoo! Kimo Auction. In September 2006, Taiwan eBay decided to become joint venture with PChome and founded Ruten Auction website. The percentages of shareholders of the company are 65% and 35% for PChome and eBay respectively.
Define the elements of the Internal Analysis utilizing SWOT as per the chapter 3 and the charts on pages 42 & 43. Be as detailed as possible. STRENGTHS * Higher Income Shoppers * Low employee turnover * High salary * Strong management * Private Brand label (Kirkland Signature) * Return Policy- hassle free * Attracts business customers | WEAKNESSES * Modify aging stores * Vendor satisfaction * Ambitious expansion plan * Lax quality control * Strong dependency on providers * Word of Mouth Advertising * Low margin * Leader-James Senegal 79 | OPPORTUNITIES * Expansion overseas and market presence * Increase online sales * Ancillary services * Private Brand label (Kirkland Signature) * Attracts business customers * Expand wholesaling-Internet Sales * Consumer-travel, optical, auto * Financial, * Insurance * Pharmacy * Recycle | THREATS * Increasing competition * Subprime crisis * Low consumer confidence * Low promotional activity * Diversification * Expand wholesaling * Customers have high mobility | Internal Factors STRENGTHS The strengths of Costco’s strategic plan include strong management, low employee turnover, high compensation, strong customer business base, strong private brand (Kirkland) and generous return policy. The company policy is committed to promoting from within their own ranks, filling as many as 86% of higher-level openings in their stores. This allows them to be competitive by staffing their stores with knowledgeable employees which increases customer satisfaction as well as decreasing staff turnover.
The company also launched an online platform and soon became one of the biggest financial services in the industry. However in the early 20’s the customer started loosing trust in the brand and consequently revenue was declined by 39% and ultimately company lost its market share. To recover from this damage, company has launched the “Talk to Chuck” campaign in 2005. The main idea behind the campaign was to give the clients a feeling as if they talked to Chuck. The marketing team wanted to control the risk of this campaign, for any unseen events, so they have planned to test TTC campaign in three major cities Chicago, Denver and Houston (which account for only 6% of Schwab’s invested assets with a test cost of $15 million.
So they barely pushed for a specific product installation. The sales strategy was also not adequate to promote the Quartz. The 20 man salesteam continued to operate like they had always operated with their current portfolio, allocating over 90% of time to current customer service. The company worried that the Quartz would cannibalize sales of their leading electric showers, even-though the Quartz represented higher margins and greater opportunities to innovate in the market. 3) Aqualisa spent three years and €5.8 million developing the Quartz.
1) Amazon.com experienced each of the following except A) maintaining its position as the number one B2C money-making EC site in the world. B) driving growth largely by product diversification and its international presence. C) declaring its first profit in 2005. D) patenting its 1-click feature which allows customers to place an order in a secure manner without having to enter personal, billing, and shipping information each time they shop. Answer: C 2) According to Internet Retailer (2009), approximately ________ percent of adult U.S. Internet users shop online or research offline sales online.
Bad Execution- Hand set is big Service is expensive. Less numbers of subscribers. Iridium targeted customers of 2.25 million in 1999 but it achieved only 7188 satellite subscribers and 10294 total service subscribers, where as it required 27000 satellite subscribers and 52000 total service subscribers. Then company changed strategy for target customers but this target group was unable to fulfil its requirement of customers. Wrong target customer selection Unavailability of hand set during advertisement.
The company’s proforma statements did not take into account any external factors such as a retail recession taking place. The amount of money invested in inventory is almost double what was forecasted for the nine-month period. Profit margin was only 10%, which was much lower than the forecasted 15-30%. By October of 1995 it should have been obvious to SureCut Shears that sales were not keeping up with what was forecasted causing inventory to build up. Conclusion: If Fischer wants to be able to repay his loan he needs to be more accurate
Paypal is the preferred way of making payments for eBay auctions and is growing in popularity for other Internet uses. By the year 2004 eBay had earned 3.3 billion dollars in revenue. Over 135 million people worldwide use eBay. Strengths: largest electronic auction website (leader of online auctions), no competition in online auction field, good customer relationship management, innovations. Weaknesses: technological developments, only online service, shipping.
Food consumption is not an option; it is essential. To capitalize off their consumer studies, Wal-Mart set aside 45% of its store space exclusively for groceries and consumables. Its competitor, Target, only allots 20% of its store space to groceries, while leaving 40% to home and apparel. The success of their strategy is evident. “Target's same-store sales have fallen for eight straight months; Wal-Mart's have risen for 22 straight months” (Gregory, 2009).
With annual revenues of $50B, Unilever compared in size to Nestle ($69B), Procter and Gamble ($68B), and Kraft Foods ($34B). The consumer goods giant started to face the problem of control because of a huge number of brands it produces. Before 2000, Unilever’s brand management strategy was highly decentralized. Each brand manager competed with in-house brands. At that time, Unilever just focused on selling its products across nations and did not create the global image for each product category.