Cliptomania Discuss the Strategic Issues Faced by

Cliptomania Discuss the strategic issues faced by the company in launching and developing their e-business venture. The biggest challenges were finding reliable suppliers and declining costs. Reliable suppliers were problematic, as Cliptomania could not find anyone who could give them consistent levels of merchandise. That met their price and selection requirements. This is because the firm was rapidly growing. The problem; is that it was difficult locating organizations who could deliver non-pierced and clip on earrings to meet these standards.

For the first 4 years, the company could not find any firms which were able to keep up with the continuing demand. ("Cliptomania Web Store," 2010) (Bailey, 2011) In the cases of costs, the firm needed to keep their expenses down. This is from Yahoo raising their prices and slower customer demand. These different factors meant that the company did not realize any increases in their profit margins from 1999 to 2001. Over the course of time, these variables created a situation where it was forced to relocate to Indiana.

This reduced operating costs and it helped to take advantage of new opportunities inside the marketplace. ("Cliptomania Web Store," 2010) (Bailey, 2011) To make matters worse, after the move to Indiana was complete. The company began to experiences challenges with the costs associated from their third party credit card processor (Paymentech). They were charging Cliptomania monthly / transactional fees and received a percentage of each sale. These expenses began to increase the costs of doing business. ("Cliptomania Web Store," 2010) (Bailey, 2011) As a result, these issues made it harder for the firm to compete.

This is because other organizations were entering the marketplace. The result is that the firm had to overcome these challenges in order to adapt with rapid transformations. These factors, determined if it could evolve and continue to meet the demands of stakeholders. ("Cliptomania Web Store," 2010) (Bailey, 2011) Provide your recommendations and analysis. The best recommendations are for Cliptomania to find a reliable stream of suppliers. This can be achieved by working with a number of organizations and constantly increasing these amounts.

In the longer term, this enables the firm to offer cliental with the products they demand at the lowest prices. ("Cliptomania Web Store," 2010) (Bailey, 2011) To keep the costs down, the company needs to find advertising strategies that can increase their customer base. This is because what they are paying for Google Ad Words helps increase their ranking on the search engines. The problem is that they are paying more to acquire and attract new customers. While the competition, has become intense, with other organizations utilizing the same tactics.

("Cliptomania Web Store," 2010) (Bailey, 2011) To address these issues, Cliptomania must seek out other forms of advertising which are cheaper. This will enable them to use multiple approaches when connecting with stakeholders in the process. For instance, one way the company can locate new opportunities elsewhere is through social networking. This is when they will build different Facebook and Twitter pages to.