Choosing E Commerce Strategies A Case Study Of Ebayvn Partnership Case Study Solution

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Choosing E Commerce Strategies A Case Study Of Ebayvn Partnership Case Study Solution

Business is currently one of the most significant food chains worldwide. It was established by Henri Choosing E Commerce Strategies A Case Study Of Ebayvn Partnership in 1866, a German Pharmacist who initially introduced "FarineLactee"; a mix of flour and milk to feed babies and decrease death rate.
Business is now a transnational business. Unlike other international companies, it has senior executives from different nations and tries to make choices considering the whole world. Choosing E Commerce Strategies A Case Study Of Ebayvn Partnership currently has more than 500 factories around the world and a network spread across 86 countries.


The function of Business Corporation is to improve the quality of life of people by playing its part and offering healthy food. While making sure that the company is prospering in the long run, that's how it plays its part for a better and healthy future


Choosing E Commerce Strategies A Case Study Of Ebayvn Partnership's vision is to offer its clients with food that is healthy, high in quality and safe to eat. Business visualizes to establish a well-trained workforce which would help the business to grow


Choosing E Commerce Strategies A Case Study Of Ebayvn Partnership's objective is that as presently, it is the leading business in the food market, it thinks in 'Excellent Food, Great Life". Its mission is to supply its consumers with a variety of options that are healthy and finest in taste. It is concentrated on supplying the very best food to its clients throughout the day and night.


Choosing E Commerce Strategies A Case Study Of Ebayvn Partnership has a wide variety of products that it offers to its consumers. In 2011, Business was noted as the most gainful company.

Goals and Objectives

• Bearing in mind the vision and objective of the corporation, the company has actually put down its goals and goals. These goals and goals are listed below.
• One objective of the company is to reach absolutely no landfill status. (Business, aboutus, 2017).
• Another goal of Choosing E Commerce Strategies A Case Study Of Ebayvn Partnership is to squander minimum food during production. Usually, the food produced is wasted even prior to it reaches the customers.
• Another thing that Business is dealing with is to enhance its packaging in such a method that it would help it to reduce the above-mentioned complications and would likewise ensure the shipment of high quality of its items to its consumers.
• Meet international standards of the environment.
• Build a relationship based upon trust with its consumers, business partners, workers, and government.

Critical Issues

Recently, Business Business is focusing more towards the technique of NHW and investing more of its revenues on the R&D innovation. The nation is investing more on acquisitions and mergers to support its NHW method. Nevertheless, the target of the business is not achieved as the sales were expected to grow higher at the rate of 10% annually and the operating margins to increase by 20%, given in Exhibit H. There is a need to focus more on the sales then the development technology. Otherwise, it might lead to the decreased earnings rate. (Henderson, 2012).

Situational Analysis.

Analysis of Current Strategy, Vision and Goals

The present Business technique is based upon the principle of Nutritious, Health and Wellness (NHW). This method handles the idea to bringing modification in the customer choices about food and making the food stuff healthier concerning about the health concerns.
The vision of this technique is based on the key method i.e. 60/40+ which simply indicates that the products will have a rating of 60% on the basis of taste and 40% is based upon its nutritional worth. The items will be manufactured with extra nutritional value in contrast to all other items in market acquiring it a plus on its nutritional content.
This strategy was embraced to bring more yummy plus healthy foods and drinks in market than ever. In competitors with other companies, with an intent of maintaining its trust over clients as Business Company has actually acquired more relied on by customers.

Quantitative Analysis.

R&D Costs as a portion of sales are declining with increasing real quantity of costs shows that the sales are increasing at a higher rate than its R&D costs, and enable the business to more invest in R&D.
Net Earnings Margin is increasing while R&D as a portion of sales is declining. This sign likewise reveals a thumbs-up to the R&D spending, mergers and acquisitions.
Financial obligation ratio of the business is increasing due to its costs on mergers, acquisitions and R&D development rather than payment of debts. This increasing debt ratio pose a risk of default of Business to its investors and might lead a declining share prices. In terms of increasing financial obligation ratio, the company ought to not invest much on R&D and must pay its present financial obligations to decrease the risk for financiers.
The increasing risk of financiers with increasing financial obligation ratio and decreasing share prices can be observed by substantial decline of EPS of Choosing E Commerce Strategies A Case Study Of Ebayvn Partnership stocks.
The sales development of company is also low as compare to its mergers and acquisitions due to slow perception structure of consumers. This sluggish development likewise prevent business to further spend on its mergers and acquisitions.( Business, Business Financial Reports, 2006-2010).
Note: All the above analysis is done on the basis of computations and Graphs given up the Displays D and E.

TWOS Analysis

TWOS analysis can be utilized to obtain numerous techniques based on the SWOT Analysis offered above. A short summary of TWOS Analysis is given up Exhibition H.

Strategies to exploit Opportunities using Strengths

Business needs to present more innovative items by large amount of R&D Spending and mergers and acquisitions. It could increase the market share of Business and increase the revenue margins for the company. It might also supply Business a long term competitive advantage over its competitors.
The global expansion of Business ought to be focused on market recording of developing nations by expansion, bring in more clients through client's commitment. As developing countries are more populous than industrialized nations, it might increase the client circle of Business.

Strategies to Overcome Weaknesses to Exploit Opportunities

Swot AnalysisChoosing E Commerce Strategies A Case Study Of Ebayvn Partnership must do mindful acquisition and merger of companies, as it could affect the customer's and society's understandings about Business. It needs to get and merge with those business which have a market credibility of healthy and healthy companies. It would enhance the understandings of customers about Business.
Business ought to not just spend its R&D on development, instead of it must also concentrate on the R&D spending over assessment of expense of numerous healthy items. This would increase cost performance of its products, which will result in increasing its sales, due to declining rates, and margins.

Strategies to use strengths to overcome threats

Business must move to not only developing but likewise to developed nations. It must broaden its circle to various nations like Unilever which operates in about 170 plus countries.

Strategies to overcome weaknesses to avoid threats

It must acquire and merge with those nations having a goodwill of being a healthy company in the market. It would likewise allow the company to use its potential resources efficiently on its other operations rather than acquisitions of those organizations slowing the NHW method development.

Segmentation Analysis

Demographic Segmentation

The market segmentation of Business is based upon four factors; age, gender, earnings and occupation. Business produces a number of items related to infants i.e. Cerelac, Nido, etc. and associated to grownups i.e. confectionary items. Choosing E Commerce Strategies A Case Study Of Ebayvn Partnership products are quite inexpensive by almost all levels, however its major targeted clients, in terms of income level are middle and upper middle level clients.

Geographical Segmentation

Geographical division of Business is made up of its presence in practically 86 countries. Its geographical segmentation is based upon 2 main factors i.e. average income level of the customer along with the climate of the area. Singapore Business Company's segmentation is done on the basis of the weather of the area i.e. hot, warm or cold.

Psychographic Segmentation

Psychographic division of Business is based upon the personality and life style of the consumer. For example, Business 3 in 1 Coffee target those customers whose life style is rather busy and don't have much time.

Behavioral Segmentation

Choosing E Commerce Strategies A Case Study Of Ebayvn Partnership behavioral segmentation is based upon the attitude understanding and awareness of the client. Its extremely nutritious items target those clients who have a health conscious mindset towards their usages.

Choosing E Commerce Strategies A Case Study Of Ebayvn Partnership Alternatives

In order to sustain the brand name in the market and keep the customer undamaged with the brand name, there are 2 alternatives:
Alternative: 1
The Business ought to invest more on acquisitions than on the R&D.
1. Acquisitions would increase overall properties of the company, increasing the wealth of the business. Costs on R&D would be sunk expense.
2. The business can resell the obtained systems in the market, if it fails to execute its method. Nevertheless, amount spend on the R&D could not be revived, and it will be thought about entirely sunk expense, if it do not offer possible outcomes.
3. Spending on R&D offer sluggish development in sales, as it takes long time to present a product. Nevertheless, acquisitions supply quick results, as it supply the business currently established item, which can be marketed right after the acquisition.
1. Acquisition of company's which do not fit with the business's values like Kraftz foods can lead the business to deal with misunderstanding of consumers about Business core values of healthy and nutritious items.
2 Big spending on acquisitions than R&D would send out a signal of company's ineffectiveness of developing innovative products, and would results in consumer's frustration as well.
3. Large acquisitions than R&D would extend the product line of the company by the items which are currently present in the market, making business unable to introduce brand-new ingenious items.
Alternative: 2.
The Business must invest more on its R&D rather than acquisitions.
1. It would allow the business to produce more innovative items.
2. It would supply the company a strong competitive position in the market.
3. It would allow the company to increase its targeted consumers by introducing those items which can be offered to a totally brand-new market section.
4. Ingenious products will offer long term advantages and high market share in long run.
1. It would reduce the profit margins of the company.
2. In case of failure, the whole costs on R&D would be considered as sunk cost, and would affect the company at large. The risk is not when it comes to acquisitions.
3. It would not increase the wealth of company, which could provide a negative signal to the investors, and might result I decreasing stock rates.
Alternative 3:
Continue its acquisitions and mergers with substantial spending on in R&D Program.
Vrio AnalysisPros:
1. It would allow the business to introduce brand-new ingenious items with less threat of converting the spending on R&D into sunk cost.
2. It would provide a favorable signal to the financiers, as the general assets of the business would increase with its considerable R&D spending.
3. It would not impact the profit margins of the business at a big rate as compare to alternative 2.
4. It would offer the company a strong long term market position in regards to the company's total wealth in addition to in terms of ingenious products.
1. Risk of conversion of R&D costs into sunk cost, higher than alternative 1 lower than alternative 2.
2. Risk of misconception about the acquisitions, greater than alternative 2 and lesser than option 1.
3. Introduction of less variety of innovative items than alternative 2 and high number of innovative items than alternative 1.

Choosing E Commerce Strategies A Case Study Of Ebayvn Partnership Conclusion

RecommendationsBusiness has actually stayed the top market gamer for more than a years. It has institutionalised its techniques and culture to align itself with the market changes and client habits, which has actually eventually enabled it to sustain its market share. Though, Business has actually established considerable market share and brand name identity in the city markets, it is advised that the company ought to concentrate on the rural areas in terms of establishing brand commitment, awareness, and equity, such can be done by developing a particular brand name allotment technique through trade marketing strategies, that draw clear distinction between Choosing E Commerce Strategies A Case Study Of Ebayvn Partnership items and other rival items. Furthermore, Business should take advantage of its brand name image of safe and healthy food in catering the rural markets and also to upscale the offerings in other classifications such as nutrition. This will permit the business to develop brand equity for freshly presented and already produced items on a higher platform, making the efficient usage of resources and brand image in the market.

Choosing E Commerce Strategies A Case Study Of Ebayvn Partnership Exhibits

PESTEL Analysis
Governmental assistance

Altering requirements of global food.
Enhanced market share. Altering perception in the direction of healthier items Improvements in R&D as well as QA departments.

Intro of E-marketing.
No such effect as it is good. Problems over recycling.

Use sources.

Competitor Analysis
Business Unilever PLC Kraft Foods Incorporation DANONE
Sales Growth Highest since 4000 Greatest after Organisation with much less growth than Organisation 4th Most affordable
R&D Spending Highest since 2009 Greatest after Business 5th Cheapest
Net Profit Margin Highest since 2007 with quick development from 2007 to 2011 Due to sale of Alcon in 2016. Practically equal to Kraft Foods Unification Practically equal to Unilever N/A
Competitive Advantage Food with Nutrition and also wellness element Highest possible number of brand names with lasting techniques Largest confectionary and processed foods brand worldwide Biggest milk items and mineral water brand worldwide
Segmentation Middle as well as top center degree customers worldwide Private consumers in addition to home group Any age and Revenue Client Teams Center and upper center degree customers worldwide
Number of Brands 8th 1st 5th 8th

Quantitative Analysis​
Analysis of Financial Statements (In Millions of CHF)
2006 2007 2008 2009 2010
Sales Revenue 44537 176727 187673 523334 635172
Net Profit Margin 6.65% 5.99% 43.31% 3.57% 89.25%
EPS (Earning Per Share) 67.67 1.79 8.37 8.96 56.74
Total Asset 199576 778461 355865 539499 87247
Total Debt 86615 17889 87333 28945 29272
Debt Ratio 74% 76% 67% 53% 48%
R&D Spending 4387 2796 2776 5964 7588
R&D Spending as % of Sales 5.77% 9.66% 6.21% 1.55% 3.11%

Executive Summary Swot Analysis Vrio Analysis Pestel Analysis
Porters Analysis Recommendations