The company will operate in an extensive competitive market. It will face both direct and indirect
competition. Direct competition will be faced through numerous similar websites carrying on same form
of business in the same way. As the company will sell through buy now option and provide an opportunity
to the bidder to compensate his / her loss, this will create goodwill. However, the company will focus
upon its strategies to seek differentiation through building trust with the target segment of middle to
upper class, college educated, generation X consumers with a desire to save money and hold expectations
that companies should operate responsibly with sustainable shipping options and operations.
The indirect competitors will be online stores who are selling electronics items. Another example of
indirect competitor is eBay and websites who provides platforms for buyer and seller to meet at a
common place and carry on their activities. For this purpose these websites are charging certain
percentage of processing fees per transactions (Stix, 2012). The indirect competitors pose a smaller threat
than the direct competitors, however their key advantage is the broad competing landscape with several
household name brands, such as Amazon, Radio Shack, Best Buy, Wal-Mart and Fry’s Electronics.
The brick & mortar and e-commerce hybrids, in particular, can gain an advantage resulting in higher
customer loyalty/switching costs through Omni-channel retailing strategies. (Thomas, 2010) However,
even through purchasing economies of scale of large retailers such as Wal-Mart, Smart Tech’s unique
operating structure enables the winner of auctions to obtain a much better price, on average, than
mainstream retailers. (University of Princeton, n.d.)
Mr. Basel – Chief Executive Officer
Mr. Basel is CEO the company and is concern with management of the company. He has 5 + years of
experience in business management. Management in the company is very important, key management
personal is all in all-responsible of the business success and failure. Mr. Basel has all the abilities to run
and manage the company effectively and efficiently; moreover he is capable to identifying and cater
opportunities available in the market.
Mrs. Jessica – Vice President of Marketing
Marketing is the key to success for any Penny auction business. It will not only capture attention of people
and make them from visitors to long term customer but also create customer loyalty. Mrs. Jessica is a
marketing expert having more than 5 years of experience in marketing. She is well aware of latest e-
marketing trend and is very social media savvy. She knows what media should be used for marketing the
business, and how much amount to be spent on each media to get maximum advantage. She always do
cost benefit analysis while considering any new medium and promotion companies.
Mr. Kurt – Vice President of Technology