Threat of New Entrants:
This force is moderate as there is anefficient workforce and hugeinvestment required for developing website or portal. Also the technologykeeps on changing with the passage of time and the existing market players are offering exclusive services which makes them renowned, so new entrants must beat the competitive extent with the distinctive strategies. They would need considerable training and experience.
Threat of Substitutes:
The threat of substitutes in respect to TV, encyclopedia, and newspaper is relatively low as the internet market has been growing in relevance. Business Fundas is significantly distinctive and by adding breakthroughs and technologies, it would be difficult for the substitutes to lower the market shares of Business Fundas.
By looking at the Business Fundas Web Analytics report on monthly traffic overview in exhibit 3, it is analyzed that the company has to use its strength in initiating to target the niche market and must be aimed to satisfy the needs of the specific market, also the company should responsibly retain a large subscription base because the company cannot retain the current and existing visitors. The company has ranked higher in the search engines, so the company should not focus on the customer acquisition or gaining new customers in the moment.
The performance of the company can be measured by analyzing the revenue trend between 2010 and 2014 which is one of the KPI, the company has been leveraging in term of profitability and realized monetary profit. The trend is displayed below;
Graph 1 shows profitability trend
The positive profitability trend indicates the direction of positive change in the earnings of the company, also it depicts that the average expenses of Business Fundas is less than the revenues generated from the major business activities at the profit maximizing output.
Furthermore, the net profit margin can be used as a key performance indicator which shows that how effectively Business Fundas have converted its sales into profit.
|Year||Net Profit Margin|
Table 1 shows net profit margin
It indicates that the current strategy of generating traffic through major sources including social sharing websites and bookmarking, have presumably generated profit for the company with lower risk that increase in revenue would leverage the profit and thus result in net profit.
It is analyzed by reviewing exhibit 1 given in the case that the company has highest session visits of United States on the website which comprise 36.7 (thousands). Also, it can be seen that 33.3 (thousand) is the estimates of the new visitor in United States, it interprets the growth of the company as well as the market reputation. It also shows that the company has been striving to move up and forward in the market.
The trend of the visits on websites by geographic region can be seen below:
Graph 2 shows session per geographic region trend
Moving forward to Exhibit 2, it is being analyzed that the ratio of females as compared to males is greater in terms of web traffic, which means that the major interest of females such as food and drink, travel and tourism and other accounted for 54.15%, showing that the females visit website more frequently as compared to men…………….
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