Example OF Report On During Early Day OF E-Commerce

Type of paper: Report

Topic: Marketing, Business, Mover, Internet, Market, Customers, Company, Advantage

Pages: 7

Words: 1925

Published: 2020/09/15


E-commerce is one of the fastest growing aspects of modern technology. The emergence and spread of e-commerce have highly revolutionized the corporate world presenting various models of conducting business. E-commerce refers to business transactions in which the parties involved interact electronically instead of physicallyWhile some of the models may be easy to implement, and yields substantial profits, others may be a bit complex. To date, e-commerce is still evolving as technology grows almost daily. While many literatures today have focused much on the future of electronic commerce, it is interesting to trace back the early days of e-commerce. During the early days of e-commerce, first-mover advantage emerged as one of the ways towards success. However, various scholars have suggested that being a market mover can significantly bring rewards as well. As such, there is unceasing debate on which of the two approaches is more successful. This report is two-fold. The first part presents a comparative analysis between first-mover advantage and market follower strategy as a way of implementing e-commerce in the early days. The report bases its analysis on practical cases of companies that successfully implemented these approaches. The second part of the report presents an internet-marketing plan based on the Singapore version. The internet-marketing plan includes one-to-one marketing, affiliate marketing, viral marketing, and blog marketing.

First-Mover Advantage versus Market Follower Approach

First-mover advantage refers to the gain that that an initial major occupant of a market segment achieves. The theory behind the first-mover advantage is that a company that establishes itself first in the market enjoys various privileges. Such a company exercises control over the economic resources, which the market followers may not enjoy. Because of this reason, some scholars allude that first-mover advantage is the most effective means towards success. In analyzing the use of ICT and e-commerce to achieve competitive advantage, Zafar F. et al. (2014, 3) adopts Michael Porter’s argument that technology leadership is effective when first-mover advantage exists. In their argument, Zafar and his colleagues provide a variety of advantages associated with first-mover.
A first-mover has the advantage of being the first to serve the customers in a given market. As such, the first mover is able to establish a loyal and dependable relationship with consumers. Accordingly, it is arguable that a firm that operates as a first-mover has a high possibility of establishing itself as a pioneer with a good reputation. In addition, the first mover may also enjoy a favorable deal with the suppliers before its competitors arrive. In the process, the first mover firm will enjoy dominance and control over some essential resources in the economy. It is also notable that first-mover Company may secure intellectual property rights and create institutional barriers. For instance, patent rights may accord a first-mover due advantage over the followers. Mueller B. A. et al. (2012, p. 1519) also avows that first-mover advantages may help a firm to generate and sustain a competitive advantage. A first-mover company, which exploits its advantages is able to become more competitive and exercises.
In the industries that are technologically sophisticated, firms that enter the market as first-movers enjoy substantial benefits for success. Various researches indicate that the first product that enters a market create a lasting impact in the mind of the consumer. As such, the first mover can take advantage of the consumers’ limited access to alternative to create a strong brand loyalty while focusing on differentiation to take a unique position in the market. Moreover, being a first mover also allows a firm to enjoy the status of the market leader who dictates the quality, standards, and the rules of competition. Once the pioneer firm establishes a strong brand loyalty, the consumers use the first-movers products or services to gauge the quality of the follows. As such, any product that falls below the first mover’s standard hardly receives attention.
Conversely, it is notable that first-mover approach also comes with various challenges. First, a first-mover firm incurs the cost associated with its status. For instance, the first-mover firm in most instances operates with limited knowledge of the customers’ needs. Moreover, first-movers also face significant uncertainties and the risk of failure if its products fail to meet the consumers’ requirements. In France, for example, early adoption of Minitel and EDI in the 1980s inhibited the capacity of venture in internet-based e-commerce. As such, it is notable that being the first mover on the wrong type of network is a major inhibitor of the competition. If the first mover fails to capitalize on its advantages, it leaves the opportunity for other firms to compete fairly and efficiently. The failure of the first-mover may hinder future advancement in the same area of investment. The followers may shy off from an economy where the market leader fails to survive.
On the contrary, a market follower is a company, which complacently follows the market leader without seeking to challenge the market leader. The justification for the market follower approach is because market followers usually take advantage of the prevailing opportunities courtesy of the first-movers. In fact, these firms do not do much marketing investment on their own. It is worth noting that market followers are the majority in every economy. Market followers tend to focus on developing a concentrated strategy in order to remain relevant. Arguably, market followers operate on a low risk zone because they rely on the already existing advantages. They do not incur high costs in trying to secure the markets in the economy. They instead enjoy the prevailing conditions that have been put in place courtesy of the first-mover.
Amazon.com is an archetype of a successful first-mover. Amazon entered the market as an online bookstore clinching the opportunity before other entrants. After Amazon made its entry as a pioneer online bookstore, other retailers such as Barnes and Noble and Borders developed their own websites to offer similar services. Since its establishment, Amazon focused on enjoying its first-mover advantage. Amazon collaborated with Borders and diversified its product line to include apparel, electronics, toys, and housewares. As such, Amazon emerged as a large one-stop-shopping platform.
It is evident that the question on whether first-mover advantage is more successful than market follower is remains debatable. Each of the strategies has its merits and demerits. Comparatively, first mover approach is more effective than market follower approach when embracing e-commerce. A company operating as a first mover enjoys various advantages. First, being a first mover accords a firm an opportunity to establish brand loyalty among the customers. Besides, the first mover sets the pace for competition and continues to enjoy monopoly-like status. Creating property rights also allows the first mover to set institutional barriers that can limit the followers’ capacities to compete. On the other hand, it is noteworthy that first movers have high chances of facing uncertainties and are at risk of failure. The fact Amazon.com has successfully implemented first-mover strategy makes it corroborative that first-mover approach is more successful than market follower approach.

Internet Marketing Plan for Coach

This section of the report presents the internet market plan for Coach.
Goals of the Internet Market Plan
Overall Strategy for the Internet Marketing Plan
One-to-one marketing
This strategy involves establishing a personal relationship with the customers by aligning the marketing mix to the personal interests of the customers. To achieve the customization strategy, the company will allow the customers to specify the elements proactively of their marketing mix. Coach will allow clients to specify their desired products. This strategy will help in giving consumers the opportunity to select from the available product options. Through personalization, customers can suggest the models they require, the quality, colors, that they want to be included in the stoke

Affiliate marketing

The use of cookie will help in implementing the affiliate internet marketing. The cookies technology will help in storing information including preferences, the login or registration, and the customers shopping contents. The use of first party cookie will help in keeping in relationship with the customers. Coach should create a website with active cookies that will help in storing the details of the customer whether he/she visits or logs in to the website. Affiliate advertising will help in understanding the interests of the customers so that the business can adjust its activities to meet the needs of the individual consumers.

Viral Internet Marketing

This approach involves the use of the existing social media platforms to increase brand awareness and achieve the market objectives. Social media sites such as Facebook provides an effective marketing platform that can significantly change the level of brand awareness. The company will implement the strategy through video clips, interactive flash games, emails, text messages, among other such as incentive based. The company will create vital messages that will circulate to spread in the wider market. As the viral message circulates, the target groups are easy to access.

Blog marketing

Bogging has emerged as one of the fast growing aspect of technology. The business management will create and manage the blog. Blog will provide consumers an easier way of interacting with the content. In the online marketing, blogging provides a large content base where customers can understand everything about the products and make purchase decisions. The blogs provide an interactive channel where the consumer gives feedback on the quality.

Target Audience

In as much as Coach uses online marketing techniques, its products target men and females. The company has a wide range of products suited designed for men and women. From the web layout, the company has separated the products and specified them under men and females separately. The online platform targets men and women of all ages. Nevertheless, it is notable that the products are more appropriate to the working class men and women who care about quality. While surfing the internet, men and females can catch an eye on the products and make the purchase decision. Precisely, the collection at Coach suit both men and females. There prices are non-discriminatory.

Scope of the Marketing

This marketing plan focuses on both local, national, and the global level. Modern technology, particularly the internet technology has reduced the world into a global village. As such, potential customers can make their purchases at any online store and have the product delivered. Therefore, the plan has a wide scope. Besides, Coach has gone global and should have its products in the global arena.

Time Span for Implementing the Plan

The proposed plan should be implemented within a period of one year. Nevertheless, there will be a review from time to time to ensure that the plan is up to date. The one-year period is suitable as it allows for an annual assessment of records.

Evaluation of the Plan

The proposed plan needs evaluation in to ensure its relevance and ability to achieve the set goals. The following are some of the key performance indicators for evaluating the success of the marketing plan:

Daily turnover

The number of customers visiting the online sites
Percentage of the market share


Coach, 2015. www.coach.com. [Online] Available at: http://world.coach.com[Accessed 08 January 2015].
Dholakia, N., 2002. Global E-commerce and Online Marketing: Watching the Evolution. illustrated ed. New York: Greenwood Publishing Group.
Ettington D. R., 2015. First-Mover Advantage. Encyclopedia of Business, 2nd Ed. , pp. http://www.referenceforbusiness.com/management/Ex-Gov/First-Mover-Advantage.html.
Mueller B. A. et al. , 2012. Pioneering Orientation and. Journal of Management Firm Growth: Knowing When and to What Degree Pioneering Makes Sense, Vol. 38 (No. 5:http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&cad=rja&uact=8&ved=0CDsQFjAE&url=http%3A%2F%2Fcba.unl.edu%2Foutreach%2Fcenter-for-entrepreneurship%2Fabout%2Fgrowth-and-innovation%2Fdocuments%2FAnand.pdf&ei=pLeuVI3gJMXtO_PegLAK&usg=AFQ), pp. 1517-1549.
Zafar F. et al. , 2014. Use of ICT and E-Commerce Towards Achieving Competitive Advantages. European Journal of Research and Reflection in Management Sciences, Vol. 2, (No. 1: http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=7&cad=rja&uact=8&ved=0CEoQFjAG&url=http%3A%2F%2Fwww.idpublications.org%2Fwp-content%2Fuploads%2F2014%2F02%2FUSE-OF-ICT-AND-E-COMMERCE-TOWARDS-ACHIEVING-COMPETITIVE-ADVANTAGES.pdf&ei=pLeuV), pp. 1-10.

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