Category: Economics

Online Companies

Online companies become more competitive by increasing their sales due to the lowest prices, a monopoly status, the total control over sales, or, to the contrary, the minimized dependency on sales. A baby-food producer can increase its market share by differentiating its product as a healthy and balanced diet through a weblog supported by the company’s online advertisement. The blog will be increasing the number of loyal customers by involving them in the discussions over impotence of the healthy diet for children. The blog will be actively supported and promoted with the help of the latest web medial tools.

Online companies increase their competitive advantages by extending their market share. They may cut their prices by intensifying turnover of the assets, reduce direct and operational costs, economize on scales and establish efficient distribution chains. Initial occupation of the market segment, technological leadership, and control of resources might be awarded by huge incomes. For example, eBay, a pioneer in online auctions in 1995, became a global on-line seller. However, Charles Stack Online Bookstore was beaten by Amazon.com. In 2003 DirectTV acquired New Corporation with the aim to broadcast its TV products  under the total control (Sandiland, 2013). Amazon.com became a publisher, thus, along with selling books it can act as a books supplier to various booksellers. (Simonetti, 2013).

Strategy

A baby food producer should use the Porter’s competitive advantage strategy to expose its product as a healthy and well-balanced food. The number of customers may be increased through active involvement into healthy diet discussions. The target customers, men and women at the age of 25-40 years are not price-sensitive. Parents allocate budget for the babies’ nutrition and they have understanding that the children’s food cannot be cheap. Furthermore, parents always care about their babies’ diet because they understand how important it is for physical and mental development of their children. The product must be licensed and protected by the intellectual property rights. A team of professionals should have a regular access to the latest findings to generate innovations.

Advantage

The company advantage can be promoted through a blog as an efficient tool for maintaining interest to the company’s product and attracting new customers through discussions over healthy and balanced diet. In addition, the blogger might discuss the importance of preschool children’s diet, who reluctant to eat a healthy homemade food giving a preference to fast food and sweets. Thus, the blogger may propose some recipes of healthy and tasty meals serviced in an attractive and friendly way (for example, semolina porridge decorated with jam as a smiling face). The blog should contain online advertisement and a link to the company’s website.

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Blog

The blog page might be based on the blog platform Blogger.com and served by Twitter to provide the efficient interactive communication. RSS will distribute updates through the well-known Google Reader to increase the number of readers in the global network. Photo Sharing will make it possible to upload photographs of the homemade dishes cooked for children through Shutterfly to encourage comments and new ideas. Social Bookmarking and Facebook social network will be very helpful for promoting the blog.

Conclusion

To sum up, the lowest prices, monopoly, total control of production and sales strategies or minimized dependency can guarantee increase of the market share for online companies. However, a baby food producer will benefit from creating an image of healthy and balanced food producer, who cares about children’s diet until they become schoolchildren. The blog will be based on the latest web medial tools capable to provide its efficient operation and promote the company’s image as a healthy food producer. 

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