1.Kogan.com is a retail and services business which is a pure –play online retail website. The various business of Kogan is Kogan Marketplace, Kogan Mobile, Kogan Insurance and Kogan Travel. The company was founded in 2006 by Ruslan Kogan headquartered in Australia (Kogan, About us, 2017).
It consists of the few factors which need to be taken into consideration:
Threat of substitute-
The new product segments of other companies can create trouble for Kogan.com as it might give wide range of products to the customers. But the treat for Kogan.com is low as it has already launched many product areas.
Threat of competitors-
This is a worried factor for the company as other giants have created a huge level of competition for the cited organization.
Bargaining power of buyers-
Due to the availability of substitute and other retail services the bargaining power of customers is very high.Therefore,Kogan.com have to keep the price low and reasonable in accordance to the market costs so that the customers remain intact.
Bargaining power of suppliers-
Kogan.com is at low threat here even if the competition is high. As the company has maintained a healthy relationship with the local distributors and supplier to get the product at a low cost.
Threat of entry-
The entry barriers are also very low in retail industry, but Kogan.com need not to worry as to reach up to their market share or brad valve other start up organization has to put extra efforts. So in near future the threat of entry is next to impossible in case of Kogan.com (Michaux, 2015).
Thus with the help of above analysis it could be stated that industry related business environment is in favour of cited organization.
Strengths of Kogan.com Ltd
Kogan.com has a large number of strengths and this is the only reason why it is one of the best firms in the market. Some of the strengths of Kogan.com Ltd are:
Kogan.com’s weaknesses
These are the areas where Kogan.Com can improve upon. Few of the weaknesses are:
The company keeps influencing and adapting new opportunities to maintain its customer’s satisfaction. Few more opportunities are:
Threats for Kogan.com
2.Kogan have created a business model whose base of gaining strength is by online trading and hence creating a new experience for consumers. The business model of Kogan.com targets to create strong online communities, keep ahead of technology trends, implementing e-business cost-cutting policies and using advertising methods. These business models cuts out the middle men’s and deals directly with the customers. The core components of the following business models are the customers, suppliers and the competitors. Few other components are,
Kogan’s business models cuts the costs so that the customers can avail maximum benefits. The cutting of costs is done at packaging and by providing paperless information. It also runs a paperless office and therefore is able to provide low cost products.
There are special widgets on the website of Kogan so that the customers easily link their social media accounts. By this policy, the company is able to advertise it socially and hence a large number of customers get attracted. Kogan has used social media as a way to gain trust of the customers.
Customers can easily gather the product information on just one click. This makes easy for the customers to research all the retailers and the brands and find the best products. Kogan also keeps a check that what actually the consumers are searching and then they use this information for their marketing. By this they can easily find out what the customer wants.
Kogan takes care that it keeps up with the new technologies and keeps an update of the latest customer trends. The business models of Kogan keep introducing new features to attract the customers. It also has a notification feature which tells the customer that there product is located to a nearby location and the expected time in which they will get the product. It also keeps a check of the product which is the most popular.
These business models create good value for all its customers as they get many advantages. At each point, Kogan’s business models provide profits to the customers. Consumers have to pay less as there is cost-cutting business model and they get all the information they need at one place. If the profit is more the company gets benefitted as a result the business partners also gets the benefits. The local distributors, the suppliers everyone gets a huge amount of business with the help of these business models. With the help of these business models, Kogan has captured a big market and gained reputation along with this it has made profits (Braithwaite, 2015).
According to the annual reports of Kogan, it can be concluded easily that the business models adapted by Kogan are applicable in real-life. These business models have been strength for the company. It has attracted a large number of customers and has taken up the retail services market with the use of internet.
3.Kogan.com will ultimately succeed as the company has taken over the market and is growing day by day. The various factors according to which Kogan.com will succeed are:
Kogan.com has made a community of its customers and business partners. As it follows a concept which says that the old customers should remain. This community has gained a huge market for Kogan.com.
Kogan.com targets marketing services like Google AdWords and gets to know the strategies. They monitor what people are searching and according to that they change their business models.
Kogan.com has hundreds of AB tests which run continuously. With this Kogan.com tests many number of variations of a page and can see how the customers will react to it.
The most important thing for Kogan is to benefit their customers. They provide low cost to the customers and also provide them with many advantages and hence gain their trust (Mason, 2017).
4.For sustaining and improving the business of kogan.com it can implement the following things,
References
Bishop, J 2010, Ruslan Kogan: Young, Rich and Growing Two Businesses Fast, viewed on 3 January 2018, < https://www.dynamicbusiness.com.au/entrepreneur-profile/ruslan-kogan-technologies-dynamic-business-01.html>.
Braithwaite, A. & Christopher, M 2015, Using operations to build successful business models for competitive disruption, viewed on 4 January 2018,< https://www.koganpage.com/article/using-operations-to-build-successful-business-models-for-competitive-disruption#>.
Kogan 2016, Annual Report 2016, viewed on 3 January 2018, < https://www.kogancorporate.com/resources/pdf/Kogan%20Annual%20Report%202016.pdf >.
Kogan Corporate 2017, Annual Report 2017, viewed on 3 January 2018, < https://www.kogancorporate.com/document/73c43b2fa1cd4706851051ddaaced964/KOG0004%20AR17_PFO_web.pdf>.
Kogan, R 2013, Ruslan Kogan: Online Retail’s Success is About Much more Than Just Decent Websites, viewed on 3 January 2018, < https://www.businessinsider.com.au/ruslan-kogan-online-retails-success-is-about-much-more-than-just-decent-websites-2013-11>.
Kogan Corporate 2017, FY17 Result Presentation, viewed on 3 January 2018, < https://www.kogancorporate.com/resources/pdf/KGN_Kogan.com_FY17_Results_Presentation.pdf>.
Kogan 2017, About Us, viewed on 3 January 2018, < https://www.kogan.com/au/about/>.
Kogan 2017, Department Menu, viewed on 4 January 2018, < https://www.kogan.com/au/koganmobile/?ref=department-menu>.
Kogan 2017, Brands, viewed on 4 January 2018, < https://www.kogan.com/au/shop/brands/?ref=header-link>.
Mason, R. & Evans, B 2017, Customer Value: How to deliver it, viewed on 3 January 2018, < https://www.koganpage.com/article/customer-value-how-to-deliver-it>.
Michaux, S., Cadiat, A. & Probert, C. 2015, Porter’s five forces, Belgium: 50Minutes.
Sarsby, A. 2016, SWOT Analysis, England: Leadership Library.
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