Case Study Question
1. What is dollar Shave clubís Business model and how does it differ from its competitors?
Ans. Dollar Shave Clubís Business model is a simple model of business where the club works on a trading model where it produces bulk of goods from other company like razor and from Dorco and again resales them at a profit. The business model in this club has a subscription method for the customers and lets customer pick any product for just $1 when they buy for the first time.
The Dollar Shave club is different from other companies because the club first has positioned itself as a club and not as just a usual company like other companies. It also has addressed the real/actual problems of the forming products for men, they are mostly doing everything the same like other company but their marketing strategy is very different.
2. What are the key elements of Dollar Shave Clubís value proposition for consumers?
Ans. The Clubís value proposition for consumers are very simple. It has named brands like razor that is usually sold in drug stores and in retail stores which will cost you some fortune, but at dollar shave club, you will have quality generic alternatives that automatically delivers right at your door for as little as 3.00 a month. No contract or any hidden fees, this is no BS either.†
3. What revenue model does Dollar Shave club use and why does it work for them?
Ans. Dollar Shave Club uses an affiliation, cross selling, direct selling and most importantly E-commerce setup in their Business model of Revenue. What they do and how it works is by as follows:
1. Dollar shave club offers commission to people when every subscription which is sold through an individual person link goes to the link to buy, gets commission and that means people increasing their business for the club.
2. The club cross sells i.e. after starting with razor blade, they offered all kinds of product from forming cosmetics and also started direct selling that is eliminating vendors margins that saved the cost for customer and made the price cheaper which means it saves money for people and boosts the revenue.
3. They are selling only though online stores and in person sales staff and that is helping the club to boost the margin of revenue.
4. Subscription is bringing a huge chunk of money which starts as low as $3 a month.
These are some of the wayís revenue is created in dollar shave.
4. How would you characterize Dollar Shave Clubís online business Strategy?
Ans. Dollar Shave Online Business Strategy from my view of characterizing are as follows:
1. It is a smart business strategy to attract users.
2. They have brand and the reviews are real with problems if there are any.
3. It is affordable and the user has a choice to pick any item for just under $1 for new subscribers.
4. The dollar store looks to be offering people with the item that is a must by making it affordable straight from them rather than it is going though retailers.
5. How have Dollar Shave Clubís Competitors responded?
Ans. Dollar Shave Clubís Competitors are shocked, they are now trying to make their product profit margin go down and at the same time increase sales with good sales option. The competition is very high right now as itís not just one against one, but one against multiple.
†I have selected Amazon as an E-commerce Company (https://www.amazon.com/). Looking at the sire through both cellphone and computer, I find the site to be very adaptable for all the devices new or old. The site is up to date and well managed. The website has all the questions, contacts, terms and condition, reviews of items, dictionary of all the item in its category. Pretty much all the needs you need. It is friendly with mobile app more than browsing through the mobile web browser.
The customer value proposition is reduction of product search and price discovery way with product delivery to its customer, If the customer is unsatisfied, they can return the product with in a month. Me as a user of amazon, I love it, it gives me time to see if I really enjoy the product. If I donít like it I will return it. Thatís a big thing for me cause, what if I am just not interested or donít like the product how I thought I would.†
The revenue model is thought mass media advertisement and online sales of good(sales). Amazon charges certain percent for product sellers to sell their product in the site. It operates in the US, in India and many other countries through out the world.
Its main competitors are eBay, AliExpress and multiple online stores. The cooperative advantages are that everyone uses the Amazon site. Its marketing strategy is through consumers, advertisement and wide range of same product with low to high price.
More information can be found in this site: https://www.repricerexpress.com/amazon-seller-marketing-strategies/
Facebook was launched in 2007 and Instagram was launched in 2010. They both are a beast when it comes to numbers of users. Facebook has 2.38 billion users and Instagram has 1 billion users.
Here Facebook is the first mover and Instagram is the follower with different things to offer to its user.
A first mover is a service or product that gains a competitive advantage by being the first to market with a product or service. Being first typically enables a company to establish strong brand recognition and customer loyalty before competitors enter the arena.
A market follower is a company that follows what the leader in its sector does. A market follower does not like taking risks, i.e., it is the opposite of a maverick. Instead, it waits and observes what its competitors do, especially the market leader. It then only adopts the leader's successful strategies.
The number says it all, Social media is dominated by Facebook with more than double users than its 2nd biggest competitor in social media. Instagram has different things to offer which is more based on photos and ads. This proves that first come first serve. Of course, there will be an end in the leading giant at some point. Facebook lately have lost tons of user cause itís getting old with people only seeing advertisement and marketing links and video. This is a threat that can cause an ending. But still after 13 years Facebook stand on the top with being the first mover.
More information can be found here: https://www.websiteplanet.com/blog/social-media-platform-users/