However the number of times the pages in the website viewed by visitors has decreased from 4. 9 times per visitor to 2. 8 times per visitor. SOOT Strengths- 1. Unique Brand image 2. 500000 visits per month average 3. High start up capital and have investors’ support 4. Unique services of workshop creation and group buying 5. Can help purchase rare imports and unique products 6. Let people encourage other people to buy things through group buying discount 7. Effective marketing campaign 8. Positive WOMB and increasing involvement of its members through discussion and so on.
Opportunities- 1. Increasing internet users 2. People are open to new ways of purchasing products Weaknesses- 1. Channel conflicts 2. Limitation to group buying solutions 1 . Competition lower profit margin 2. Other different ways of purchasing products Problems found in situation analysis Statement of primary problem After the interesting launch strategy, the web site comes short of breath. Two pathways are outlined (focus on group-buying and good deals vs.. Focus on consumer creation and exclusives or remain the same to have both). But the problem is which one to take?
Evidence of problem “Pauli believed that two board alternative paths were conceivable: Clubs could focus purely on group buying, or it could broaden the websites offerings, with less emphasis on getting consumers a low price. ” Effects of problem By defining the strategy to go ahead, profitability and long term outlook will be effected. Strategic alternatives for solving problems Strategic alternative 1 This alternative concentrate on increasing values for group buying and getting members good deals on products at a discounted rate.
Under this alternative, efforts ill be diverted to handle more demands by reinforcing the purchasing team to satisfy and cater for more customers who are previously unable to reach out due to limitations such as small purchasing team. However, possibility of lower profit margin caused by competition can occur. Further, it’s pointed out that most people come to clubs. Com to make savings (86. 9%) Strategic alternative 2 This alternative will let the website purely focus on exclusive and creation workshop. As mentioned that people were open to new ways of services and profit margin is higher compare to alternative 1 .
This strategy can maintain their profit and weight out the potential risks concentrated strategy. This alternative can definitely keep the present ideas people have about clubs. Com whilst maintain the brand image of a group buying site since so many Further, constant monitoring and statistical research should be conducted consistently to ensure the program can be run smoothly and effectively. If it does fail to become successful, outside consultant agency can help in terms of changing strategy or altering parts of it.