Finding Sustainable Profitability in Electronic Commerce Marketing Strategy Analysis & Solution

Marketing & Sales Case Study Analysis and Solution

At Fern Fort University, we use Harvard Business Review (HBR) marketing principles and framework to analyze Finding Sustainable Profitability in Electronic Commerce case study. Finding Sustainable Profitability in Electronic Commerce is a Harvard Business Review case study written by John M. De Figueiredofor the students of Sales & Marketing. The case study also include other relevant topics and learning material on – Innovation, Marketing, Technology

Strategic Marketing Analysis of Finding Sustainable Profitability in Electronic Commerce case study written by John M. De Figueiredo will comprise following sections –

• Finding Sustainable Profitability in Electronic Commerce Case Description
• Marketing Definition
• Market Potential Analysis of Finding Sustainable Profitability in Electronic Commerce
• Market Share Potential Analysis
• Segmentation and Segment Attractiveness Analysis
• Competition and Competitiveness Analysis of Finding Sustainable Profitability in Electronic Commerce
• Customer Value Analysis of Finding Sustainable Profitability in Electronic Commerce case study

Order Now - Finding Sustainable Profitability in Electronic Commerce Marketing & Sales Case Study Solution

Order Now - Finding Sustainable Profitability in Electronic Commerce Porter 5 Forces and Strategy Analysis

Finding Sustainable Profitability in Electronic Commerce Marketing Case Description

Sales & Marketing Case Study | Authors :: John M. De Figueiredo

This is an MIT Sloan Management Review article. To sustain a competitive advantage, Web retailers must align their strategies with the product characteristics and buying practices of customers in their market segment, according to the author. He divides the dot-com retail market into four segments on the basis of the type of good sold and describes the strategies needed to succeed in each. The first segment is undifferentiated commodity products, such as barrels of oil. Competitive advantage goes to the low-cost provider with economies of scale, low overhead, low-cost production, and efficient distribution. The second segment, quasi-commodity products, such as books and toys, has attracted many dot-com retailers. First movers can gain competitive advantage by branding their Web site using site-specific loyalty programs, virtual communities, and timely delivery. Late entrants will encounter extreme difficulty. In the third segment, "look and feel" goods, such as clothes, homes, and furniture, are differentiated by their quality and reliability. Customers want to experience them in person before making a purchase. Dot-coms that don't create the products they sell will be forced to compete on price and will find margins difficult to maintain. In the fourth segment, "look and feel" goods with variable quality, such as fresh produce and original artwork, each individual product differs from every other one. Customers want to experience these products to ascertain their quality before buying. Dot-coms that establish a reputation for quality and sell low-priced goods to repeat customers have the best chance of success.

Innovation, Marketing, Technology

Marketing Definition

According to American Marketing Association – Marketing is a set of activities that a firm undertakes for creating, communicating, delivering, & exchanging offerings that have value for customers, clients, partners, and society at large.

Kotler explains - Marketing is a process by which organizations can create value for its potential and current customers and build strong customer relationships in order to capture value in return.

Market Potential Analysis of Finding Sustainable Profitability in Electronic Commerce

Market potential analysis comprises evaluating the overall market size of the related product that the firm is planning to launch. This will involve defining – Why the target market segment needs the product and how it will provide a solution to full its consumers’ needs. Market potential of Finding Sustainable Profitability in Electronic Commerce products various on factors such as –

• Maturity of the market. In mature markets the profitability is often stable but the market potential is less as most of the players have already taken market share based on the segment they are serving. New players have to go for market share strategies in marketing.
• Technological competence of the existing players and culture of innovation and development in the industry.
• Untapped market sizes and barriers to both enter the market and serving the customers. Often companies can easily see the unfulfilled needs in the markets but they are difficult to serve as there are costly barriers.
• Define the core need that your product is serving and list out all the direct and indirect competitors in the market place. This will help not only in positioning of the product but also in defining or creating a segment better.
• Uncovering the current and untapped market sizes and barriers to serving the larger market. Analyze the areas that you need to sort out while launching the products to wider market and what are the challenges the firm will face in market place.
• Estimate the current stage in product life cycle and its implications for marketing decisions for the product.

Market Share Potential Analysis

• Understanding the buyer behavior model for Finding Sustainable Profitability in Electronic Commerceindustry.
• Identifying the market share drivers relevant to Finding Sustainable Profitability in Electronic Commerce market.
• Segment Attractiveness Analysis – Our analysis will work out which are the most attractive segments and which are the one the firm should go ahead and target. We point out in great detail which segments will be most lucrative for the company to enter.
• Understanding the different needs and relative value of your offering by segment.
• Developing segment priorities and positioning the product based on the product need fit developed by the firm.

Order Now - Finding Sustainable Profitability in Electronic Commerce Case Memo

Order Now - Finding Sustainable Profitability in Electronic Commerce SWOT & PESTEL Analysis

Competition & Competitive Position Analysis

• Uncovering customer-based competitive positions for key rivals and firm’s offering. This will not only help in assessing the strengths and weaknesses of the competitors but also help in defining and positioning of the product.
• Developing a positioning and launching strategy. It will require not only distribution channel analysis but also promotion mix for the product.
• Strategic Marketing Planning — the process of developing and maintaining a strategic fit between the organization’s objectives and capabilities and the ever evolving marketing opportunities for its products.

Finding Sustainable Profitability in Electronic Commerce - Customer Value Analysis

Capturing customer value is essential to marketing efforts as it results in higher return in the form of both current & future sales, greater market share, and higher profits. By creating superior customer value, the organization can create highly satisfied customers who stay loyal and buy more. This, in turn, means greater long-run returns for the firm.

• The crucial role of customer perceived value in acquiring and retaining profitable customers. Product differentiation is often based on building on a value niche that a firm believes that is very important to the customer. This niche contributes to perceived value. If the perceived value is high then customer stay loyal to the product if not then she can switch to the competitor’s product.
• Graphically displaying value differences for deeper understanding and better internal communication. This helps is building a narrative that a customer can identify with. The better the insight more are the chances of connecting with the potential customers.
• Identifying and selecting actionable value creation options. This can help in increasing the customer lifetime value. Customer lifetime value is the value of the entire stream of purchases that the customer would make over a lifetime of patronage.

NOTE: Every marketing case study solution varies based on the details and data provided in the case. We write unique marketing strategy case solution for each HBR case study with no plagiarism. The specific case dictate the exact format for the case study analysis.

You can order Finding Sustainable Profitability in Electronic Commerce Marketing Strategy Case Study Solution with us at Fern Fort University .