Ther e arent high inventory costs because sellers are

This preview shows page 8 - 10 out of 14 pages.

name recognition through marketing, special offers, and user experience. There aren’t high inventory costs because sellers are selling their own items, there are no intellectual property barriers in the way. The barriers to entry are minimal and require the company to get a domain, outsource hosting services to handle infrastructure, and hire consultants for design. These barriers are not difficult to overcomePower of suppliers:Since T2T follows a C2C business model, the power of suppliers doesn’t negatively impact the business. There will likely be multiple sellers listing similar items at varying price points that buyers can choose from. The advantage is that T2T will be insulated from being dependent on outside vendors. Power of customers:In a market like the one T2T operates in, there are no suppliers because the customers sell their own goods, often at a lower price than most would find on any online or brick and mortar retailer. This benefits the company because many customers will be drawn to the lower pricesExistence of substitute products:T2T doesn’t manufacture any products of its own but there are many companies that offer competing services that might have overlapping products. The company would combat this by increasing brand awareness through features such as free shipping and a lively social media-like experience.
Industry value chain:There is no value chain in the traditional sense in this industry since it does not rely on suppliers, manufacturers, transporters, or distributors. The industry mainly relies on hardware and technology such as the internet and the use of servers which are then used to deliver a final product to the customer (a platform where buyers and sellers meet). The advantage is that T2T will not be reliant on demands from suppliers, manufacturers, and distributors because the customers provide that themselves.Nature of intra-industry competition:The competition within the industry is based on differentiation. T2T differentiates itself through special features like free shipping and a rich user experience. This gives the company a competitive advantage as there has been little change in the nature of competition within the industry.Firm value chain:The company has put in place business processes and methods of operation in order to achieve the most efficient operations in the industry. Due to the nature of T2T’s business, there are no inbound and outbound logistics to consider so the focus would be largely on operations, sales and marketing, and customer service. T2T may adopt any relevant new technologies because the main point of differentiation for the company is the design and user experience and updating these features may benefit the company. Changes in technology are not likely to have negative affects the company in the long run.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 14 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
Anthony Sweeny
Tags

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture