Learning Diary 2

Gaddai Sireesha
321
1. Factors to be considered for completing an online marketplace analysis to assess competitor,
customer and intermediary use of internet as part of strategy development
SLEPT Analysis: It helps to examine Social, Legal, Economic, Political and Technological
issues to ‘scan’ the external environment and evaluating existing ones. The outcome of SLEPT
analysis is an overall picture of the macro environment to identify threats and opportunities
that can be used in SWOT analysis. SWOT further adds on the internal factors affecting the
organization. SLEPT helps to identify and hence take advantage by maximizing opportunities
and minimizing threats. It gives an understanding of the broad and long term trends and makes
the firm in a better position for strategic decision making.

 Social Factors: Includes health consciousness, education level, population growth

rate, gender distribution, social classes etc.
 Legal Factors: Includes laws such as anti-trust law, discrimination law, intellectual
property laws, consumer protection laws, employment laws, regulatory mechanism
etc.
 Economic Factors: Includes growth rates, inflation rates, interest rates, exchange
rates, fiscal policies, monetary policies, credit availability etc.
 Political Factors: includes government policies and intervention in the economy such
as corruption level, government stability, trade control, competition regulation,
involvement in Trade Unions, consumer protection laws, employment laws etc.
 Technological Factors: includes technological aspects such as R&D activity,
technology incentives, rate of technological change, infrastructure level, access to
technology etc.

Following factors also can be considered along with the above one

 Customer segments
 Creating consumer personas
 Psychometric segmentation
 Demographic Segmentation
 Lifecycle segmentation
 Web Savvy / Non-web savvy
 Competitors Analysis
 What are the competitors doing?
 How is their UX/UI?
 Customer engagement
 Intermediaries and search sites
 Destination sites
2. Method for identifying the main businesses and marketplace models for e-business
The three different perspectives from which a business model can be viewed are given below
1. Marketplace position perspective: Positioning is how we set the business apart from
the competition and solve problems unique to the business.
2. Revenue model perspective: An e-commerce revenue model is a plan for
generating revenue for an online business. While e-commerce revenue models share
many similarities with brick-and-mortar businesses, they also enable you to reach
customers around the globe and offer more diverse methods of generating sales.
3. Commercial arrangement perspective: Companies like yahoo and Amazon offer
fixed-price sales, but, in its place as a marketplace intermediary, Yahoo! also offers
alternatives.
Others could be
1. Value proposition of the business – how product/service is helping consumers/users to
more effectively do a job.
2. Process – Manufacturing, Finances, services
3. Audience – B2B, B2C, C2C, etc.
4. Code Licensing – Proprietary, Open source
5. Interaction – One to one, one to many, many to many
6. Distribution – On premise, Cloud, Hybrid
7. Profit Generation
 License
 Usage based
 Subscription
 Freemium
 Transaction charge
 Freemium
 In-app purchases

3. Criteria for evaluate the effectiveness of business and revenue models for online businesses
Evaluating Effectiveness of Business Model
1. Potential of the business model to generate recurring revenue
2. Effectiveness of the cost and revenue model
3. The scalability of business achieved through the business model
4. Self-Sustainability of business model
5. The level of protection offered by the business model against competition
6. The agility of the business model wrt changing technology and consumer needs
Effectiveness of Revenue model of the Business
1. Sales model – The Volume of sales generated and the operational costs incurred
 2. Advertising model – The reach of the platform to its user. Higher the reach more
suitable is the revenue model
3. Transaction fee model - The number of users using the platform for transaction.
4. Subscription Model- The number of subscribers of the service and the frequency of
updation of subscription plan
5. Usage based – The number of users, the type and the volume of services used
6. License based – The number of new customers gained periodically

4. One additional topic related to marketplace analysis for e-business that you feel is important.

Companies collect and analyze their customer related data from their e-business in CRM
systems. The data often comes from a variety of different digital sources. From these large
volumes of data, patterns can often be recognized - also known as clustering - groups can be
formed which can be defined by specific properties. Offers are then created which have been
designed to appeal to these groups. So as a good marketer, it is important to strategize the
marketing campaigns in such a way that it reaches wider audience and better responsiveness.