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Admart case study(rough draft)

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AdMart case study published in ACRJ,

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Admart case study(rough draft)

  1. 1. Admart case study(rough draft) Aditya Dixit
  2. 2. Strength <ul><li>Didn’t have to invest in the costly real estate </li></ul><ul><li>Price relieve to customers. </li></ul><ul><li>Advertising from other arms of business </li></ul><ul><li>Brand name emerged in short time </li></ul><ul><li>It was a novel idea which gave an advantage of early start. </li></ul><ul><li>Rising penetration of internet. </li></ul><ul><li>Attract customer without credit cards with Virtual credit cards </li></ul><ul><li>People didn’t have time </li></ul><ul><li>Lack of vehicles for transporting </li></ul><ul><li>Extensive coverage </li></ul><ul><li>Items on sale could be easily changed. </li></ul>
  3. 3. Weakness <ul><li>Low internet penetration </li></ul><ul><li>Traditionally people want to buy things off street, by touching and feeling them. </li></ul><ul><li>No scope of bargain, which was a part of everyday shopping experience. </li></ul><ul><li>Not much cooperation from distributors and had to import stuff. </li></ul><ul><li>Quality problems face by ad mart. </li></ul><ul><li>Most people had 24 hour convenience store in their vicinity. </li></ul><ul><li>People didn’t trust online shopping. </li></ul><ul><li>Low productivity as they focussed on coverage. </li></ul><ul><li>Small player so couldn’t dictate the price. </li></ul>
  4. 4. Opportunities <ul><li>They could trade in thing that routine buying. </li></ul><ul><li>They could leverage their delivery network and enter into courier service. </li></ul><ul><li>They could allow advertisement on their website. </li></ul>
  5. 5. Threats <ul><li>Entry for new entrants was tough as few major players dictated the terms. </li></ul><ul><li>Competitors could move quickly and imitate the model </li></ul><ul><li>Price war could be started by competitors as they had price fixing system in grocery market.. </li></ul><ul><li>Similar services could be started by competitors. </li></ul><ul><li>  </li></ul>
  6. 6. Lessons learnt: <ul><li>  </li></ul><ul><li>Technology is just a tool. It doesn’t change how people think or what people do; it just changes how we do it. For example instead of sending letters, we now send emails. But we still do written communication. So companies should keep the consumers in mind and how they think and feel, before expecting them to embrace a new technology. </li></ul><ul><li>Quality is of paramount importance if the trust of consumer has to be won. </li></ul><ul><li>The company should understand the new market well before it decides to diversify. </li></ul><ul><li>There should be a contingency plan, in case the competitors decide to imitate your model. </li></ul><ul><li>Timing is very important. Companies should move with the time, neither ahead of time, nor behind the time. </li></ul><ul><li>In order to obtain cost leadership, companies should first focus on small segment and then grow. Admart tried to cover 95% of HK but failed to meet the satisfaction. </li></ul>
  7. 7. Amazon.com and Admart <ul><li>Amazon .com was started by Jeff Bezos in 1994. It is currently America's largest  online retailer . So Amazon had the advantage of an early start and it created a market before other competitors could enter the market. Amazon.com started as an online bookstore, but soon diversified, selling  DVDs ,  CDs ,  MP3 downloads,  computer software ,  video games ,  electronics , apparel, furniture, food, and toys. Thus Amazon focussed on selling things that are routine buy and doesn’t involve much inspection by the user by physically feeling them. As a result, is a user decided to buy a book, he could directly buy the book from Amazon.com. He didn’t need to be there in a bookshop to physically feel the book before buying. Admart -> grocery physical presence requd. </li></ul><ul><li>HK -> Cost conscious market, people like to bargain. Not so in America </li></ul><ul><li>Amazon offers quality. It was persistent and made a profit years after it was launched. It went public quickly to fight a longer war, rather than short battles. </li></ul><ul><li>It collaborated with other retailers rather than fighting them. For example it powers and operates retail web sites for  Target ,  Sears Canada , Benefit Cosmetics,  bebe Stores ,  Timex ,  Marks & Spencer , Mothercare , and  Lacoste . </li></ul>

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