Competitive Analysis: Buy.Com Amazon and Overstar

Competitive Analysis In a hyper- war-ridden population economy and with increasingly rational buyers, the competitions among e-commerce businesses are becoming more(prenominal) and more intensive. Given the priority of competitiveness in modern companies, practitioners of competitive light need to come to terms with what business and competitive analysis is and similarly how it works. In order to survive in such a competitive environment, a follow must deliver superior node jimmy over its competitors. Three competitors that CanGo analyzed are amazon. om, Buy. com, and buy in. com. We focused on areas analogous personnel, products, and facilities. Amazon is an American electronic commerce company that has become an prototype of internet business. The company was founded the company in 1994 and launched on the Internet in 1995 as an online bookstore. The business is built around two values, frugality and customer service. Amazon has been ranked number one in customer gaiety and service. A key to Amazons success was the decision to resign early dineros to secure market share.As a result, Amazon is one of the most recognizable online retailers. Amazons shipping be are relatively high in comparison to other online retailers. condescension accessions in shipping costs they defend yet to adjust their determine strategy. Dependence on the North American market, despite expanding into international markets is some other weakness. Amazon still derives 55% of its sales, from the North American market. This dependence could have adverse affects on Amazons future market growth. Buy. om was launched in November 1997, with 30,000 high-tech products. In one year Buy. com, sets first-year record with $ one hundred twenty-five million in sales. The company has expanded in numerous profit sections such as entertainment parks, subsidiaries, and large international breweries. Buy. com continues to introduce tender give aways. The target market is college campu ses and sports. Currently, Buy. com is spending considerable amounts of money in the Spanish marketing field. Some weaknesses are the loss of investor interest referable to wishing of profits. Overstock. om initially began by selling surplus and returned merchandise on an online food market however, in recent old age it has expanded to selling new merchandise. Overstock has established partnerships with many leading brand-name companies. These relationships allow Overstock to buy products at significant discounts, which lowers the costs for consumers. Overstock. com restated its financial statements for fiscal years 2003-2007 due to problems incurred when implementing an oracle enterprise resource planning program (ERP) (Taub, 2008).Weaknesses Based on an hold by Stephen Taub, Botched ERP Hookup Spurs Restatement, Overstock. com restated its financial statements for fiscal years 2003-2007 due to problems incurred when implementing an Oracle enterprise resource planning program (ERP) in 2005. (Taub, 2008) When Overstock. com implement its new ERP system, customer generates changed from batch regaleing, to being recorded as somebody transactions. However, Overstock did not install all the accounting elements needed to process customer refunds in the new system.Instead, the company chose to put manual fixes (Taub, 2008) in place however, these manual fixes did not account for all the applicable refund types, resulting in refunds not being recorded. The errors do not stop here. Overstock. com as well as found that the ERP system did not reverse out shipping tax for cancelled orders and the company was under-billing their fulfillment partners for return related costs and fees. (Taub, 2008) Although, $12. 9 million is material to report a restatement, the impact on the stockholders bequeath be minimal, as Overstock. om is a large company that already has a negative net worth. Stockholders equity reported on Overstock. com 2009 Annual Financial Statements is negative $3 million. (Overstock. com, 2009) and Overstock. com has not had a moneymaking quarter since 2004. (Coenen, 2009) Stockholders should be concerned with Overstock. com management, as this is not first sequence the company is restating their financial statements. In February, 2006, Overstock. com announced it would restate 4 years of financial statements, 2002 though 2005, due to improper accounting of freight costs. Taub,2008) It appears that the company has some serious internal control and reporting issues that need to be addressed. CanGo Strengths Resources Strong brand names Good reputation among customers Recognizable brand Positive relationship with employees Weaknesses Employees under trained. Insufficient suppliers Unplanned products planning deficiency of industry knowledge CanGo has the ability to compete with their competitors in any facet of the industry. There are high profit margins in the e-commerce industry. There is an increase in demand in the onli ne gaming industry.There are no major barriers to entry and the future growth potential is limitless. Coenen, T. (2009). More report Mistreatment by Overstock. com. Retrieved February 11, 2010, from http//www. sequence-inc. com/fraudfiles/2009/02/09/accounting-mistreatment-by-overstock/ Fornell, C. (2007). ACSI Quarterly Commentaries Fourth-Quarter 2007 Survey. Retrieved http//www. theacsi. org/index. php? option=com_content&task=view&id=17&Itemid=clxv Taub, S. (2008). Botched ERP Hookup Spurs Restatement. CFO. com. Retrieved February 9, 2010. Retrieved from http//www. cfo. com/article. cfm/12494875