Five Forces Analysis of the Search Based Advertising Competitive Structure Search-based advertising has attracted enormous attention in the advertising industry as it offers unprecedented ability to target potential customers with quantifiable returns. Bargaining Power of Buyers and Suppliers The bargaining power of both the buyers and suppliers is relatively low because the online audience usually determines the exchange between the buyer and the supplier and also because of the Auction process where the Buyers negotiate between themselves (E.g. Google and X Company) Threat of New Entrants The barriers to entry in the Internet search market are high. The current competitors have thousands of servers deployed in locations all over the. A new entrant would need to provide better search results at very fast speeds to compete in this highly competitive market.
As a result of consumer’s embrace of the internet as a shopping media and the internet has directly contributed to the shifting of demand of products from hits to niches comprising the long tail. Many companies have even turned to niche marketing to tap the niche marketshare as well. The Long Tail describes the niche strategy, that sell a large number of unique items, each in relatively small quantities. There are three aspects of long tail that make the internet marketing success.  First, large variety of unique items attracts large volumn of minority tastes.
More and more companies are using the internet to promote new products and services. Online communities such as forums allow consumers to post questions, give their opinion, and research products. Marketers can use this as an advantage to improve, customize and create new products based on consumer want and need. The internet has adversely affected many organizations since its inception; many people are turning to the web for their local and world news which has caused declining sales in newspapers forcing many to go under. Magazine sales have seen a decline as well with information being so readily available consumers can search just about anything from entertainment, sports, fashion, and automobiles.
However, it is important to recognise that the competition in luxury fashion is not based on price but rather on image perception and brand value and quality. It could be argued that competitive rivalry is slightly lower in emerging markets because of their recent development and the slower entrance of key players in this industry. Potentially, this can be offset by the competition of local fashion retailer. Bargaining Power of Buyers Luxury brands have all individual consumers to sell to globally but also in a given country. However, due to the higher prices, there is a certain segment to which these brands can appeal to – this strengthens the power of the buyers.
Negative externalities occur when social costs are more than a private cost. Governments may usually intervene when negative externalities arise, this is to tax demerit goods, which are goods that have negative externalities and are over produced in an economy. However, the government may find other solutions much more useful, for example; they find it more effective to subsidise merit goods, goods giving out positive externalities and also provide more information about the effects of demerit goods to discourage them. If markets were over producing demerit goods, those selling those goods such as firms would be taxed, so raw materials for the goods may be more expensive or possibly the machinery. This would increase the costs and result in the firms passing on the costs to the consumers, this would increase the prices of the goods causing negative externalities and discourage them from being bought.
* Groupon provides access to great deals and discounts which are usable at customer's local and/or national companies. * Groupon creates a powerful communication channels between customers and merchants as well as providing a personalized customer experience. * Groupon develops and maintains customer profiles in order to improve interactions between them and merchants. I believe that these features, which I think is called customer-centric, can be considered as contemporary as it considers the needs and benefit of both customers and merchants. It also keeps up with the recent technologies and helps boosting the e-commerce sector.
The board members wanted to make sure that the fundamentals of Netscape could justify the dramatic increase in valuation. Netscape Communications Netscape Communications Corporation provided a multitude of products and services that support the usage of public and private Internet capabilities. The products offered allowed customers to communicate more effectively in the growing network of servers through various types of multimedia. Netscape also designed and enhanced a security code system that made the execution of financial transactions over the Internet more safe, which was an integral service given the new and unproven safeguard of the Internet networks. Moreover, their most notable product was the Netscape Navigator, which was the leading client software program that allowed individual users to exchange information over the Internet in a user-friendly manner.
Threat of substitutes from such services as internet providers is high and increasing as modern technology becomes more prominent, it is a driving force resulting in the disintermediation of traditional travel agency businesses. This consequently means that threat of new entrants is high, as anyone can now set up their own travel agency business online. Thereby the possibility of new entrants is greater now as opposed to in the 1990’s when the internet was not as prominent in the travel agency sector. Finally, rivalry amongst competition is high. This all concludes to the disintermediation of travel agencies.
CHAPTER 1 INTRODUCTION A. Industry Analysis The e-commerce industry like Lazada are using social networking sites like Facebook , Twitter and Instragram as their tool for marketing promotions to build brand images, expand client base and engage with consumers. Advertisers are now spending an increasing proportion of their marketing budgets on internet advertising. The e-commerce industry is one of the most progressive sectors of the economy and its evolving very rapidly. According to Ketan Chaphalkar, that Amazon.