Threat of Substitute The threat of any newcomer taking the market share of

Threat of substitute the threat of any newcomer

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Threat of Substitute: The threat of any newcomer taking the market share of company is high because of the fact, there is no entry barrier in the sector and its also easy to establish a online business. Bargaining power of suppliers: Companies that supplies products to companies are big companies which continuously sell their products through Easy bay's websites. The company is fairly new and therefore the big multinational buyers do have the bargaining power towards Easybay. Bargaining power of Buyers: It refers to the power of buyers to bargain for the products or services that they purchase. Easybay is a fairly new company within the market and thus it is quite obvious that it does not enjoy any dominance in terms of its pricing and will have to act according to the prevalent prices within the market. TASK 3 P3 Presenting data to support gap analysis and evaluation Businesses runs in a society, which is quite dynamic in nature and therefore it is very important to frame policies keeping in mind the dynamic nature of overall society and its 5
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elements ( Baptista, Karaöz and Mendonça, 2014 ). Because the level of competition is quite high within the market, and lot of competitors are entering market, Data of Easybay are as follows: Basis Company Competitive company Competition within market The main advantage that Easybay has is their price competitiveness. They provide goods at very low prices to its consumers. The pricing of companies like Tesco, Wall-mart etc. is quite high because of the fact that they incur heavy expenditure on various advertising and promotional campaigns and thus have to recover the same from consumers. The prices are usually 10-12% higher than Easybay. New Entrance in Industry This organization offers item at less expensive rate and they have outlets which give simplicity to client in moving toward brand. They settles 2% rebate for general clients. The New entrance in the industry fight on pricing of products, they offers products at considerably low prices than Easybay, even if they would incur loss. Power of Supplier The cost of supplying product to Easybay for suppliers is quite low because Easybay does not charge much profit margin from its suppliers, it ranges usually from 5-8%. The cost to suppliers is quite high as they have to pay a higher price to its marketer like Tesco, wall mart etc. Power of Customer Business model is customer oriented and hence, higher customer satisfaction is there ( Burns, 2016 ). More weightage is given to profits then anything else. Dissatisfaction of customers. Threat of Substitute There is always a threat to existence of company as it is The current players are big enough that they do not get 6
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quite small as of now, and any new competitor can come up with same business model.
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