Search engines are the driving source for online shopping. When consumers can type in a name of a product and click search hundreds of stores come up with pricing of the product. People like choices, and would rather search through the web for the best product and pricing. Associability plays key role in the success of companies. Companies have to pay a huge price to have their store front at the top of the search list.
Cheddar’s had always been profitable through that it had ever closed a company-owned store and had shown steady increases in sales and customer counts over time. Also it has a source of income from its franchise stores which could grow at a faster rate. Cheddars’ estimated EBITDA was $12.0 million in 2003 and it had a projected EBITDA of $18.9 million in 2007. Cheddar’s also had an average EBITDAR of $1,027k which was much higher than its competitor Chili’s which was $723k. At the purchase price of $60.5 million, we can also confirm that the Market Value/EBITDA (5.4) of Cheddars’ is higher than its competitor’s (2.6) when we compare multiple ratios, which means Cheddar’s is overvalued.
While all five of the competitive forces are strong when analyzing Blue Nile and other online retail jewelers, the strongest competitive force is analyzing rivalry determinants. • Industry Growth - As the online diamond retail industry is growing steadily (10.7% increase in internet sales from 2008 to 2009) it is becoming more attractive for new entrants to enter the market and capitalize on the increased profit. • Fixed Costs or value - The benefit of an online store is that fixed cost are minimal, because fixed costs are only a small portion of total costs incurred, competitors feel more inclined to enter into the market • Product Differences - As diamonds are a tangible products that can be compared easily it is important for online retailers to make their customers perceive that their products is different to those of their competitors (such as offering exclusive jewelry lines) and it will also be important that the customer values that difference • Brand Identity - Customers need to perceive the strength of the brand in the industry, it is important for online retailers to have a respectable brand as the stronger the customers brand preference the lower the risk of competitive rivalry. • Switching Costs- Due to the low switching costs, it is easier for online retailers to change suppliers and leads to a high risk of competitor rivalry. • Concentration and Balance - There are a lot of competitors in the industry and they all
New Balance also suffers from higher production costs compared to their main competitors who outsource for all their labor. Opportunities: The emergence of online commerce s represents a great opportunity for New Balance. According to the Internet World States, on June 30th 2012 the internet use the world population stood at 34.3 percent with a growth rate of more than 566.4 percent during 2000-2012 (Internet World Stats 2012, p. 1). With the growing number of international online users New Balance could greatly benefit from selling direct to consumers through various online channels. The growth in the shoe market also represents another opportunity for New Balance.
Sales reps then targeted shops near universities and gyms. Dealing with individual accounts rather than big retailers had the added advantage of being fast. In 2003, an estimated 64% of volume was generated by consumption in bars, clubs and petrol stations—accounting for 79% of the value due to the price premium—while retail outlets made up the remaining 36% of volume. Red Bull was facing strong competition in the retail space, not only from beverage heavyweights such as Coca-Cola and Pepsi, but also from private labels. For example, the retailer Asda (part of Wal-Mart) launched its own energy drink branded Blue Charge in the UK.
But today there is a lot of demand that made the consumer create groups on the Internet demanding to launch the product. Carbonated soft drink commonly known as "Fizzy drink" in UK, accounting more than half of the sales of the soft drink market worth £7.58bn in 2007 and representing 56.1% of the soft drink sector. There has been a decline by3.5% in the market ever since 2003 because of the upcoming trend of water, fresh juice that are healthier than the carbonated drinks. In 2008 UK soft drink market showed a total sales of £8.4 billion, 1% lower than 2007. Also showed a constant growth of minimum 6.6% in the uk soft drink market with coca cola leaving Britvic and red bull in second and third place.
Mattel: Overpowering Marketing & Manufacturing Challenges SWOT Analysis Strengths - Mattel has a powerful brand and many products that are currently loved and viewed with nostalgia by people around the globe. The strength of their brand and brand families can help them weather economical storms. They also enjoy a strong leadership that insists on corporate social responsibility and takes great strides to ensure that stakeholders are ethically treated according to local laws, cultures, and customs. Weaknesses – Barbie and Hot Wheels account for 65% of Mattel’s annual sales, leaving the proverbial eggs all in one basket. Mattel has also been slammed by negative press, which has maligned its reputation for product safety.
Xiaomeng Guo Assignment 1-2: Amazon.com: The Brink of Bankruptcy Abstract Amazon.com is one of the biggest international online-shopping Companies and the most familiar shopping website for every American. No matter if customers want to buy something or sell something, Amazon.com always is a good place for them. I still remember in 2010 I had an opportunity to interview with a Target manager. I asked him, "What is Target’s biggest competitor?" The manager said, "Amazon.com is our biggest competitor."
Costco value treasure hunt merchandising believing that buyers remained on the lookout to make one-time purchasesof items that would appeal to the company’s clientele and that would sell out quickly. Example of these treasure-hunt specials they offer are namely: espresso machines, expensive jewelry and diamond rings, Italian-made Hathaway shirts, Movado watches, exotic cheese, Coach bags, necklaces and among others. Costco has been very successful in opening stores compares to its competitor. They opened 127 new warehouses in the year 2005-2008. Their warehouses ranged size is from 70,000 to 205,000 square feet; the average size was 141,000 square feet while on Sam’s Club ranges between 70,000 to 190,000 square feet with the average being about 132,000 square feet and on BJ’s wholesale however
Hundreds of thousands of people who put time and effort into selling goods on eBay do not work for the company. Also, a great portion of eBay revenue comes from direct advertising on the site, as well as end-to-end providers, whose services increase the ease and speed of eBay transactions. Acquisition of PayPal, additional transaction – based fee revenue. eBay`s strategy focuses on expansion in geography and scope and on continuing innovation to enhance the variety and appeal of products on its sites. eBay has taken its model to numerous foreign markets and been successful.