Essay About Background Problem And Online Store

Case Analyze
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Appendix IIIndividual Case Report TemplateStudent Name:    Kai WangCourse Number:  MKTG 2270.1 SECTIONProblem: Background Problem: Home furnishing industry— Still struggling from financial crisis.                  Increasing online store. Students may not spent a lot on home furnishing.Competition Problem: Competitors from large companies. Selling Problem: Which of the best advertising way for selling? Financial Problem: Huge costs at the starting stage. Analysis: NR was a company which provide all-in-one starter kits for new student in university or college moving into residence in Canada. The founder Murray James saw a market opportunity through analyzing the market situations. In Canada, each university have around 25000 undergraduate students (see Exhibit 1) and each college have around 70000 students (see Exhibit 2). This was a very big market for NR Company. What’s more, parents and other relatives would always spend a lot on back-to-school items for their children as gifts. Honestly, NR could help students to buy stuffs more convenient. However, there were some issues that NR was facing. Because of the depressed home furnishing industry in Canada, people usually bought things online or in large discount stores, which will hit NR’s profits to some extent. Besides, NR also had many competitors in Canada. Like Residence Liners, which was the most famous back-to-school provider in Canada, has developed being mentioned in the student residence handbook today. Such strong competitor really caused a big impact of NR’s competitiveness. Moreover, those various costs may be much bigger than the revenue in the first three years. Considering the problems, NR could establish an online store in the beginning to attract the students. Although the cost of online store was high, in the information age, NR would make profits fast eventually. As for the competition problem, NR could advertise the company in order to exalt the company popularity. As long as expanding brand awareness, people would choose NR finally. In conclusion, NR has a strong market prospect. With the appropriate marketing strategy, NR would easily attract other partners’ investment.       Alternatives: AlternativeAdvantagesDisadvantagesRelevant FeaturesAccept/RejectSmall profitsAttract customersExorbitant costGreat salesAcceptDifferentiation Avoid head-on clash with competitors, form own charactersWould take customer a long time to find the differences Increase customer loyaltyAcceptTake all the advertising methodsBuilt reputation quickly. Enter the market easily Intense cost pressureMore competitive AcceptIncrease investmentReduce cost pressureHard to find other partnersRejectRecommendation and Plan: