The online classified ad service industry has burgeoned tremendously since the early 1900s. It has flourished due to the idiosyncrasy of the management information system that allows it to deliver the services that general public desires. Coupled with the advancements of time, the online classified ad service industry constantly under go deferential changes that adds to the final presentation of services that eventually lead to exchange of tangible goods. There are many propelling factors behind the success of the online classified ad service industry such identifiable named organizations with impeccable business processes that are aimed towards supplying customers with what they want – just the way the want it. A quintessential named organization …show more content…
that has successfully honed in on the fundamentals of online classified ad service industry is Craigslist. Born out of innocent, non-capitalistic intents, Craigslist has dominated the online classified ad service industry since inception. Craigslist success in the online classified ad service industry is solely tied an evident dedication to bringing people together in through simplistic website without glamour. Value is constantly added to the product and services of Craigslist as they are focused on Marketing and selling products and services via presenting knocking down the barriers between people and encouraging friendly patronage. Craigslist supply chain is consist of a plethora of suppliers whether they may be individual or grouped dealers whom supply all types of merchandise and services which is them presented to customers who are able to specifically choose what they would like to purchase. It also relays information to masses of people at a time, or to a specific geologic location. Craigslist has a competitive advantage, which is to provide a wide array of unique goods, and services from numerous suppliers.
This creates a cage for customers, as buyer power is minimized because they are a far more suppliers through Craigslist than buyers. The supplier power continuously increases of the frequency of new supplier selling through Craigslist. A customer is less likely to take their patronage outside of Craigslist because the same product or service is available at different prices from different suppliers through Craigslist. Buyer power is also minimized due to the fact that all transactions through Craigslist reveal the supplier to the customer. The supplier is traceable an in most cases reachable which then creates a switching …show more content…
cost. Although Craigslist is extremely successful, does not mean that they are not other entities in the online classified ad service industry offer similar services that have the potential to steal patronage from Craigslist. There are existing organizations within online classified ad service industry that provides the similar services to Craigslist. Ironically, Craigslist still continue to do well. This is due to the atmosphere that Craigslist foster. Craigslist give their costumers the ability to choose how they would like to purchase a good and service and from what supplier. Preferences, taste, demographics and price of substitutes are all factors that have an influence on demand. Craigslist simply facilitates the groundwork for specific markets, which supplies specific customers. There are many alternative products compared to what is present on Craigslist that reduces the threat of substitute products and services. However, there is a wide variation within products in the market that may be better bought from another entity than Craigslist. For example, picking up the classified section of the local newspaper in a small town with limited access to the internet may present a greater chance of finding success than going on Craigslist. The fact remains that Craigslist, though large and widely utilized cannot successfully combat the creation and marketing of other substitutes. Outside of supplying customers with a wide variety of goods and service, there is not much left to do other than hoping that there experience doing patronage through Craigslist was great. This shows that the threat of substitute products or services in the online classified ad service industry is moderately high. The threat of new entrant is very high in the online classified ad service industry. It becomes easier every day to develop and market new ideas over the Internet. Individual in other countries is has the ability to use the internet as a vehicle to enter the online classified ad service industry, however, their survival is dependent on a few crucial things. They must be the hold buyer power down to a minimal level through providing stellar customer service and other people friendly attribute to survive. Similarly to Craigslist, they must give the people what they want. This is not an easy task and is a challenging barrier to entry simply because of the diversity of the general public. Craigslist strategies are evident in the fact that they cater to all types of consumers.
The success of Craigslist can be easily ties to the implementation of a focused strategy. Craigslist do a great job with attending to a large group of customers through specific mediums. The variation is evident as the price for car on Craigslist is much high than the cost of a pen. However, Craigslist present a number of suppliers whom markets a particular product to a particular group of customer at a particular price. This is done repetitively across the demand and supply curves. Basically, Craigslist provide series through a narrow market for both a low and a high cost and is still profitable because of the diversity of the suppliers and the diversity of the customers that use
Craigslist. The online classified ad service industry is very large, and continues to grow with technology advancements. There are many entities in the online classified ad service industry, however a few successful ones. This is due to the diversity of the general public. In order to combat factors such as buyer power and maintaining suppler power, the entity must align with numerous suppliers of that can supply a variety of merchandise. Craigslist has succeeded in doing this and keep their competitive advantage, Craigslist must expound upon protecting their customers and providing them with extraordinary sense of safety when using shopping.
In the future, when other manufacturers are looking for a good distributor to do business with, the manufacturer might look at the distributor’s history of poor relationships with other manufacturers and customers. Since manufacturers do not want to conduct business with distributors who have a bad reputation, they will do business with another distributor, which will result in profit loss for the distributor with the bad reputation. For example, if there is a problem between Amazon and Dell, then Amazon might lose customers who were looking for Dell computers. This will also affect Dell, because customers might buy computers from other companies, resulting in losses for
Large players can offer competitive prices if they buy in bulk. Smaller players can differentiate themselves by offering niche products and superior customer delight at a premium price.
Suppliers must maintain good relations with the companies in the industry. This is low because there are multiyear service contracts and the delivery industry uses items such as vehicles, employee benefits, general goods and airline contracts associated with overhead of running business, but all contracts are rewarded through an RFP process. There are enough players in the market and had high fixed cost and thus have substantial buying power.
Driving site traffic will be the biggest hurdle for this business model. Getting sellers to populate the site and buyers to browse will require marketing both on and offline. Though a marketing mix designed for the target audience and eventually the general public will be able to escape this hurdle.
Market structure breakdowns into various categories based on the number of sellers, type of products, and the level of market penetration. In the online streaming industry, Netflix is categorized in a monopolistic competition market. As Irvin Tucker (2010) defines, “monopolistic competition is a market structure characterized by (1) many small sellers, (2) a differentiated product, and (3) easy market entry and exit” (p.268). By using t...
In such situations, the buying industry often faces a high pressure on margins from their suppliers. The relationship to powerful suppliers can potentially reduce strategic options for the organization.
After enjoying much initial success by utilizing the internet and a patented technology which connected buyers to sellers, priceline began to suffer growing pains early on. Initially priceline was successful because it concentrated solely on airline seats. Airlines were more than happy to fill empty seats for any price rather than fly with an undersold plane. Copying its success, priceline quickly followed into offering hotel rooms, another commodity in which hotels would rather book a room at a minimal price than have it empty. As priceline spread out to encompass more areas such as home mortgages and groceries, it faced a diluted image to shoppers. Some ventures were huge resource drains to the company both financially and in talent. As employees tried fixing what was wrong with problem areas, profitable areas such as hotels and airfare began to receive direct competition from the airlines and hotels themselves as well as other websites such as expedia.com.
E-marketing is a fast growing and rapid platform for any form of business. EBay has been highly successful over recent years and this is a perfect example of an online business. The internal and external environments are constantly changing and in order to keep up with these changes, businesses and organisations must make relevant changes, and generate new strategies to keep up with contemporary developments in e-marketing and to also maintain their position in their market in comparison to their competitors.
Xia, M. & Xia, N. (2008) 'The Complementary Effects of E-Markets on Existing Supplier--Buyer Relationships in a Supply Chain', J.Manage.Inf.Syst., 25 (3), pp.9-64.
Since its launch in the mid '90s, Dell's e-commerce business has been a poster child for the benefits of online sales, says Aberdeen Group analyst Kent Allen. The company's strategy of selling over the Internet -- with no retail outlets and no middleman -- has been as discussed, admired and imitated as any e-commerce model. Dell's online sales channel has proven so successful, says Allen that the computer industry must ask: "Does the consumer need to go to the store to buy a PC anymore?"
In agricultural markets, farmers sell homogenous products. There are a large number of sellers and buyers, since crops are essential foodstuffs. Farmers and buyers are
The conversion of online searchers or online customers into buyers by researching or marketing for customers through interaction, thereby simplifying the customers of consumer process of finding the products they wish to buy. Secondly, the increase in cross-sell by charming or pleasing the customers by upgrading the quality of the manufactured goods which is one of the factors that are not originally implemented and thirdly, creating successful relationship between customers.
Marketing is a vital component in the success of businesses. Smaller businesses rely on business advertising, expenses, knowing if the business is networking with the right people, or joining the best organisations which lead to success (EStartup business blog, 2010). Marketing concentrates on customers and what the customers want. Customers are the source of sales and profits. Many small businesses are faced with remarkable hardships due to not developing the right marketing plan (EStartup business blog, 2010). To help these businesses a more appropriate or better marketing plan needs to be designed. Small business internet marketing services can help businesses develop and thrive in a highly competitive market. For the highest quality internet marketing services, hiring an online marketing company to design a customized internet marketing campaign may be advantageous for some businesses (EStartup business blog and contributors, 2010). Identified will be the role that marketing plays in a successful business demonstrated by use of two examples, the importance of developing a marketing plan, and ethical and legal issues that surround marketing practices (EStartup business blog, 2010).
Internet threw open the plethora of opportunities for enormous scaling of business, thanks to the massive scope of expanding as well as popularizing the business by way of online advertisement. Now, every kind of business no matter big or small businesses can expand itself by way of online advertising where there are massive users across the whole world.
This paper includes the process of online business; how to sell a product, advertising, various ways to create awareness and how to become a reseller. Laws and conditions for an online business.