Business Scenario: Meeting Pent-Up Demand
Note: These case studies are intended to serve as an illustration of business concepts. Any reference to actual companies is unintended. Introduction: A group of Asian entrepreneurs saw the trend in US and Europe towards Asian culture and saw an opportunity to provide goods and ornaments to the ready market. In fact, they noticed the few items that were available at eBay and other places tended to fetch attactive prices. In particular, they noticed that demand far outstripped supply and decided to take up the business opportunity. Analysis: Realising that supply was the key, they set up operations in Singapore and negotiated with suppliers for volume discounts and favourable payment terms. As they planned to offer credit card payments, this meant they needed a payment gateway which offered cross border settlement. They knew that marketing would be key towards tapping the pool of buyers and looked for the most appropriate channels. Implementation: To further enhance their visibility, they took up Web advertising on portals such as Sina.com and Sohu.com which expatriate US and European businessmen were likely to visit. They also create promotions to create opportunities for cross selling and up selling their products. They commissioned bonuses which had a high perceived value to enhance consumer loyalty. Within the first six months of their business operations, they clocked up $500,00 in revenue, and expected to aim for $2 million by the end of their first year of operation. |