Strategic Marketing – ShopNiche Industry Analysis
You are expected to create a new company relate to : “”Online Shopping Site for a variety of consumer products” same company as #00121507.
Then do the Industry analysis about this company
Please read 2 articles attachments in detail first , then according these two articles’ materials do the industry analysis about this company you create.
This reference provided an Industry Analysis Worksheet with the following questions:
1. What is your total industry wide sales volume? In dollars? In units?
2. What are the trends in industry sales volume?
3. Who are the major competitors? What are they like?
4. What does it take to compete? What are the barriers to entry?
5. What technological trends affect your industry?
6. What are the main modes of marketing?
7. How does government regulation affect the industry?
8. In what ways are changing consumer tastes affecting your industry?
9. Identify recent demographic trends affecting the industry.
10. How sensitive is the industry seasons and economic cycles?
11. What are key financial measures in your industry (average profit margins, sales commissions, etc.)?
Strategic Marketing – ShopNiche Industry Analysis
Your Name
Subject and Section
Professor’s Name
February 25, 2021
Understanding the industry where your product operates is important for the company’s long-term success. Accordingly, this industry analysis would focus on the eCommerce industry, which is ShopNiche’s main industry. The subsequent sections would include an analysis about various knowledge related to the eCommerce industry in the United States such as competitor analysis, marketing strategies, and technological trends, among others. All in all, the author believes that ShopNiche has a good potential given its focus on specialized products in relation to the opportunity of the industry.
Industry Analysis
The total industry wide sales volume in the United States is about $595.5 billion in the year 2019 CITATION Obend \l 1033 (Oberlo.com, n.d.). This trend has increased by 14.9 percent compared to 518.5 billion in the year 2018. Accordingly, studies show that this trend is still expected to increase consistently for the next three years despite the restrictions imposed by the COVID-19 pandemic CITATION Sha19 \l 1033 (Shaw, 2019).
Competitors
The major competitors for this company are Amazon, eBay, Walmart, and other drop shipping websites. On the one hand, Amazon, eBay, and Walmart are online marketplaces that provides a variety of product categories for everyone to choose from. On the other hand, drop shipping websites focus on niche categories.
In order to compete with these companies, it would be best to offer a more niche and specialized product categories that are not easy to find in other marketplaces. Accordingly, some of the barriers to entry includes competitiveness of the market, high advertising costs, and reduced powers over suppliers.
Technological Trends
The technological trends that affect this industry includes the development of seamless mobile applications, improvement of technology related to logistics, and other kinds of trends.
Marketing
The main modes of marketing include SEO, paid a...