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Business Environment Assignment : Kogan.com

   

Added on  2020-05-28

11 Pages2331 Words621 Views
Running Head: CASE STUDY 1ASSESSMENT 1: CASE STUDY

Case Study2ContentsASSESSMENT 1: CASE STUDY.................................................................................................................1Question.1.............................................................................................................................................3The current business environment of Kogan.com is defined by Porter five forces model:...............3Threat of substitute-......................................................................................................................3Threat of competitors-...................................................................................................................3Bargaining power of buyers-..........................................................................................................3Bargaining power of suppliers-......................................................................................................3Threat of entry-.............................................................................................................................3Kogan.com’ SWOT analysis:...............................................................................................................4Strengths of Kogan.com Ltd...........................................................................................................4Kogan.com’s weaknesses..............................................................................................................4Opportunities for Kogan.com Ltd..................................................................................................5Threats for Kogan.com..................................................................................................................5Question.2.............................................................................................................................................6Cutting costs-.....................................................................................................................................6Involving communities through social media-...................................................................................6Information gathering-......................................................................................................................7Adapting new technologies-..............................................................................................................7Question.3.............................................................................................................................................7It has built a community-...................................................................................................................7It follows targeted marketing-...........................................................................................................8A/B Testing-.......................................................................................................................................8Customer’s benefits-.........................................................................................................................8Question.4.............................................................................................................................................8REFERENCES........................................................................................................................................10

Case Study3Question.1Kogan.comis a retail and services business which is a pure –play online retail website. The various business of Kogan is Kogan Marketplace, Kogan Mobile,Kogan Insurance and Kogan Travel. The company was founded in 2006 by Ruslan Kogan headquartered in Australia[ CITATION Kog172 \l 16393 ].The current business environment of Kogan.com is defined by Porter five forces model:It consists of the few factors which need to be taken into consideration:Threat of substitute-The new product segments of other companies can create trouble for Kogan.com as itmight give wide range of products to the customers. But the treat for Kogan.com islow as it has already launched many product areas.Threat of competitors-This is a worried factor for the company as other giants have created a huge level ofcompetition for the cited organization.Bargaining power of buyers-Due to the availability of substitute and other retail services the bargaining power ofcustomers is very high.Therefore,Kogan.com have to keep the price low andreasonable in accordance to the market costs so that the customers remain intact.Bargaining power of suppliers-Kogan.com is at low threat here even if the competition is high. As the company hasmaintained a healthy relationship with the local distributors and supplier to get theproduct at a low cost.Threat of entry-The entry barriers are also very low in retail industry, but Kogan.com need not toworry as to reach up to their market share or brad valve other start up organization hasto put extra efforts. So in near future the threat of entry is next to impossible in case ofKogan.com[ CITATION SMi15 \l 16393 ].

Case Study4 Thus with the help of above analysis it could be stated that industry related business environment is in favour of cited organization.Kogan.com’ SWOT analysis:Strengths of Kogan.com LtdKogan.com has a large number of strengths and this is the only reason why it is one of the best firms in the market. Some of the strengths of Kogan.com Ltd are:High level of customer fulfilment-The main strength of this company is the relationship it maintains with the customers. It has gained a high level of customer satisfaction. It also maintains good brand fairness among the customers.Highly proficient labour pool- Kogan.com provides training and learning programs for its employees and hence has a skilled workforce.A good record of success of the new products and the innovated products.A good quality is maintained by kogan.com and it scales the production according to the conditions in the market through automation of activities.Kogan.com has created an active distribution chain and hence majority of its products reached the market.Along with this, the company has a strong network of suppliers of raw material as the result the company has best supply chain management system[ CITATION ASa16 \l 16393 ].Kogan.com’s weaknessesThese are the areas where Kogan.Com can improve upon. Few of the weaknesses are:Kogan.com has higher abrasion rates as compared to other companies. Hence, the company have to keep investing in the training and learning programs.There is little scope for expansion of the current business models as the structure of organisation is in respect to these models.The inventory is huge as compared to the other companies and this makes more investment in the inventory resulting in wastage of capital.When there were new entrants in the market the company was not able to handle thesechallenges and it lost many market shares. This will displace the long-term growth of the company.

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