4p and Swot Analysis of Auction and G Market

Topics: Shopping mall, Retailing, Electronic commerce Pages: 5 (1232 words) Published: September 25, 2012
Analysis of Auction
1. 4P Analysis
1) Product
As the Auction collects data from customers and customer center, it gives product suggestions what customers want to the affiliated off-line companies who supply products to the Auction. The Auction classify every listed product by specific categories, and the Auction makes both of customers and sellers satisfy their dealing desire by using differential marketing such as premium registration.

2) Price
In the Auction internet shopping mall, customers determine the price of products listed compared to other companies that sell the products with certain rate of discount. The more there bidders are the more expensive the price will be and if there is only one bidder the price will be very low. The Auction gets a commission of registration and additional service from seller based on beginning price in general and public auction and it charges a commission of contract price by using unprogressive treatment. This mechanism gives benefits to customers. Moreover, the Auction implements low-price policy by reducing both distribution and additional cost generated by affiliated off-line companies. The saving point is also one of its price policies. Buying products, customers get points which can be used as real money in the mall and benefit the customers who have higher points and the company provide lower commission to the high points customers. In this way, the auction is making more of regular customers. Additionally what makes auction different from other shopping mall is their subsidiary service which gives customers fun. For example, the site has a guessing the price game for customers so that customers can enjoy themselves during shopping.

3) Place
The Auction uses distributional channels which were already established by current off-line companies. This system benefits the company by lowering distribution costs and benefits customers providing delivery that is more reliable. There are three major distribution channels-Public delivery service, Registered post and delivery service running by the Auction itself. Usually it is hard to find proper delivery service for each customer without enough information but since the Auction has a number of customer databases, the company can provide the best distributional channel that fits each customer.

4) Promotion
To make more customers the Auction adapted ‘Recommending system’. This system is originated in companies aim to hire new employees who recommended by former employees. The Auction is using this system to increase new customers by giving compensative points to the recommender. Also for the first time as internet shopping mall, the Auction started TV advertisement. Now under the massive competition with a lot of internet shopping malls the Auction uses celebrities who are known for their fashionable taste to attract customers. Furthermore, the Auction provides one-to-one service to the customers by E-mail and sending brochure. With the database the company has, it’s easy to meet the customer’s need.

2. SWOT Analysis
1) Strength
The Auction is the first internet action site and has the largest members in Korea. This fact links to strong bland image and increasing revenue annually. Moreover, after merged by e-bay that is the largest internet auction site, the Auction has financial strength. Since most customers aged 10s through 30s, the company has more possibility to grow in the future. For this reason, the Auction needs to hold current customers and attract new customers with strong brand image.

2) Weakness
The Auction highly relies on brokerage commission for revenue model, so the company needs to diversify their revenue structure. Also, the Auction doesn’t provide new contents in the market compared to G-market which get positive responds by introducing new contents on their...
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