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Bit Gold Case Study

   

Added on  2020-09-29

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Running Head: BITGOLD1Bit Gold Case StudyName of StudentInstitution AffiliationDate
Bit Gold Case Study_1

BITGOLD2IntroductionBitGold is a Canadian company offering savings and payment services. The company allowspeople and make payments and have savings inform of Gold. Roy Sebag and Josh Crumbfounded it in the year 2014, and in 2015 it had its Initial Public Offering (IPO) in Canada on theTSX venture exchange. It had a blending of blockchain technology a digital currency which laidthe way for future legitimation, thus making it able to go public through the help of Financialtechnology startups. It continues to advertise its model of the business to potential customers allover the world, offering free storage of Gold. It also ensures that its vaults in various regions aresecure through an arrangement by the Brinks company which provides access to the vaults andalso gives insurance to customers. It has headquarters in Toronto Canada and the Europeanheadquarters in Milan, Italy.Question 1BitGold, as a global platform, should target economies with a large population such as India. Itshould come up with marketing strategies that are respective to every developing country to enterthe market. BitGold needs to target developing economies that are open to accepting newtechnologies. Other growing economies such as China and India will also be appealing toBitGold even though there might be entry challenges in the market since for a case in Chinathere are other established players in the sector such as the Alibaba Group which has Alipay (Fu,2019). For the company to acquire a large number of users from the developing countries, thereshould be no charges to users, and therefore it should cater for storage and maintenance. Thecompany can achieve these by charging a small percentage on every transaction to provide forthe cost. The company has varying audiences form different parts of the world. Therefore, itshould tailor its strategies depending on the economy of the respective region to penetrate the
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BITGOLD3markets. It needs to market its benefits which include low entry cost, zero storage cost and thestability of the gold market to attract the individuals in these countries seeking long terminvestment that is less affected by the economic forces.Question 2BitGold service operates under Canadian law and is regarded as a dealer associated with stonesand metals. For it to remain on the right side of the law, it should ensure that transaction of thecustomers begin in a different subsidiary BitGold Vault Inc. The laws by the corporate are that itshould sell and buy 99.95% pure gold and that the Gold should meet the minimum requirementsset by the London Bullion Market. It's also a requirement for the company that the customersensure that they have insurance cover for their golds from Brinks company. The patent-pendingtechnology "aurum" ensures that the customers conduct an audit at the vault when requesting fora real-time audit of the Gold through a digital copy that is encrypted and sends to the auditor orthe vault custodian. It also should allow that the Gold is physically inspected, reported andreconciled. Question 3BitGold needs to understand its market for it to successfully market its services to users andmerchants in Canada and abroad. It's through understanding the market that the company gets anidea of the business is ready; this helps the company to know if it will be valuable. For effectivemarketing, the company should also grasp the basics and rules related to the cryptocurrency sothat it can answer the customer questions accurately. The company can create an emailsubscription on the website so that interested users can subscribe to receive updates and otherrelevant information related to BitGold. The company also can build a community of users to actas a marketing service. The users in Canada and abroad can work together as a community
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