Understanding the competitive environment is critical when developing a strategy. Using Porter's Five Competitive Forces model from week one, choose a company and describe the five forces for that company. Do NOT choose a car company or a company that another student has already chosen. As an example, you can use page 4 of this Toyota case study. In your responses to other students, comment on whether you agree or disagree with their analyses and what you would add to their analyses.
That was week one post
Cratejoy is a company that creates a platform for dealers to unveil a subscription exchange in business. The main reason why I decided to choose this company and base my arguments on it is that the business was launched last year and it has been performing well in terms of business. Market research suggested that the firm closed a $4 million venture just after it was launched. These good outcomes were as a result of the power of subscriptions economy and the relative nature of the company to understand how to typically help subscription enterprises succeed through the aspect of customer maintenance (Hughes, 2014).
The co-founder of the company does know that customer custody is the key to a successful business (Hughes, 2014). The founder had made an effort to make customer retention a key to performance indicator after realizing that most of the company's entrepreneurs were focused on the aspect of customer acquisition. Due to this effort, companies who have employed the service are significantly boasting of high rates of customer retention than the average rate exhibited Cratejoy.
Information technology is a feature that is changing how most companies are operating recently. In Cratejoy, the information technology sector is affecting the entire process by which the company dealers are conducting business activities on this platform. However, it is also discretely reshaping how the dealers are exchanging goods and services. From the aspect of competition and other competitive companies of Cratejoy, IT is playing an important role by being monitoring the ‘value chain' of the enterprise (Tucker, 2008). This value chain ideology divides Cratejoy's activities into relative technologically and economically distinct activities that it performs to do business.
In general, we can agree that the value a company tends to create is measured by the amount that buyers on the market are willing to pay a certain existing product or service. Besides, many businesses are profitable if the value they create on the market platform is exceeding the cost of performing the rate events. For Cratejoy to gain the competitive advantage over its rivals, it should consider performing such value activities at lower costs.
Sources:
Hughes, C. (2014). From passion to profit: Start your business in 6 weeks or less! : a step-by-step guide to making money from your hobby by selling online.
Tucker, R. B. (2008). Driving growth through innovation: How leading firms are transforming their futures. San Francisco: Berrett-Koehler Publishers.