100%(2)2 out of 2 people found this document helpful
This preview shows page 7 - 10 out of 13 pages.
Threat of Substitute:The threat of any newcomer taking the market share of company is highbecause of the fact, there is no entry barrier in the sector and its also easy to establish a onlinebusiness.Bargaining power of suppliers: Companies that supplies products to companies are bigcompanies which continuously sell their products through Easy bay's websites. The company isfairly new and therefore the big multinational buyers do have the bargaining power towardsEasybay.Bargaining power of Buyers: It refers to the power of buyers to bargain for the products orservices that they purchase. Easybay is a fairly new company within the market and thus it isquite obvious that it does not enjoy any dominance in terms of its pricing and will have to actaccording to the prevalent prices within the market.TASK 3P3 Presenting data to support gap analysis and evaluationBusinesses runs in a society, which is quite dynamic in nature and therefore it is veryimportant to frame policies keeping in mind the dynamic nature of overall society and its5
elements (Baptista, Karaöz and Mendonça, 2014). Because the level of competition is quite highwithin the market, and lot of competitors are entering market, Data of Easybay are as follows:BasisCompanyCompetitive companyCompetition within marketThe main advantage thatEasybay has is their pricecompetitiveness. They providegoods at very low prices to itsconsumers.The pricing of companies likeTesco, Wall-mart etc. is quitehigh because of the fact thatthey incur heavy expenditureon various advertising andpromotional campaigns andthus have to recover the samefrom consumers. The pricesare usually 10-12% higher thanEasybay.New Entrance in Industry This organization offers itemat less expensive rate and theyhave outlets which givesimplicity to client in movingtoward brand. They settles 2%rebate for general clients.The New entrance in theindustry fight on pricing ofproducts, they offers productsat considerably low prices thanEasybay, even if they wouldincur loss.Power of SupplierThe cost of supplying productto Easybay for suppliers isquite low because Easybaydoes not charge much profitmargin from its suppliers, itranges usually from 5-8%.The cost to suppliers is quitehigh as they have to pay ahigher price to its marketerlike Tesco, wall mart etc.Power of CustomerBusiness model is customeroriented and hence, highercustomer satisfaction is there(Burns, 2016).More weightage is given toprofits then anything else.Dissatisfaction of customers.Threat of SubstituteThere is always a threat toexistence of company as it isThe current players are bigenough that they do not get6
quite small as of now, and anynew competitor can come upwith same business model.