E-Bay.com is the first company to be evaluated. It employs a combination of portal, storefront, and auction business models to attract customers. This unique approach allows customers to monitor price changes and offers various technologies to facilitate marketing and sales. The varying prices of products make it a strong competitor for discount stores worldwide and provides great options for purchasing products or services.
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indirect competitors of Apple
The second company considered is Dell. com which utilizes a storefront and portal business model to distribute its products and services to customers. This approach provides a set price for the products, making it popular among
customers worldwide. Dell was one of the first companies to fully embrace the internet, establishing its first website in 1994 and transitioning many business activities online before its competitors. (Kraemer & Dedrick, 2001) The company recognized that its direct model gave it an advantage in online sales. Unlike indirect sellers like Apple, IBM, HP, and Compaq, Dell did not face concerns about channel conflict with resellers and distributors when it initially started selling online.
Grandmas Treats' can adopt the storefront model for selling its products, similar to Dell.com. There are several reasons for this decision:
- The storefront model allows for the maintenance of product prices and the brand.
- Competition for product sales is irrelevant since the products have a fixed price that is unlikely to change.
- It is important to avoid illicit means of raising product prices. The use o
extra software for an auction model would be expensive. Additionally, dynamic pricing is not possible with a storefront or portal model, as price variations are not observed. While the selected brand may offer discounts, there are no variations in price.
This model would save customers from:
- unnecessary price hikes.
- crude competition for the products.
- sacrificing quality for a lower price. The impression is to buy at a lower price rather than the branded price.
The company would incur various costs.
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