E-Business - vente-privee.com

Résumé du document

It is now 8.38 am exactly. We are currently 92,773 people connected and the shirt I wanted is still available, but only in XS or XXL sizes. Welcome to my home, this Thursday, 3rd January 2008 during the 2 days Calvin Klevin sales, organized on the Vente-privée.fr website. In France, this very well-known and revolutionary online seller is the leader of the growing e-business market, the private-sales. In this report, I will analyze the Vente-privée company and answer this simple question, what is the business value of e-business for this company and how did it become leader in its sector? To do so, I will give some general information about the market, then analyze the company's business model and development strategy, to finish with an answer for the problem.

Extraits

[...] The business value of the e-business in this case is everything and everywhere. It has been now 22 years that the CEO of Vente-privée is specialized in this market, but he had never known such a success, a could not reach such a huge target before. Nowadays thanks to the web, the company succeeds into creating a link between retailers and customers. Even if it only concern past –season products, the fact that companies could still sell them is good for their activity, reduce wastage and help their finances. [...]

[...] When the good is received, he has 7 days to return it in case of trouble. Vente-privée concentrates all the orders in a unique one that will be sent to the selling company. They buy the articles at their face value, will pay those 30 days after reception and can return any damaged one with no time restriction. The seller sends only the articles ordered ASAP. Vente-privée will everything but will not stock the merchandise because they order only the sold quantity, but just dispatch it at every customer's address. [...]

[...] Because it was the first time this type of business strategy was implemented to sell products and control at the same time, its entire chain value: sales, marketing, studio photo/design, computing, logistic and after-sales service! However, the main factors that made the company leader of its market, and that can ensure it to keep the leadership in a long-term point of view are: 1. They were the pioneers of the sector 2. Many of the sales concern luxury products 3. The financial structure and the business model are very strong 4. [...]

[...] In fact, the company tries to gain what we call in a back-to-back operation of International Business the differential advantage. Everything they negotiate with the seller allows them to take advantage of it in the sales conditions imposed to the final user. For example: the buyer needs to pay when he orders, Vente-privée only 30 days after reception; the buyer has got 7 days to return its damaged product, Venteprivée have no restriction etc. In fact, their fixed costs are represented by the salaries, a huge warehouse in Paris and the head-office. [...]

[...] Those cyber-sellers all want to get the biggest piece of the cake such as it is a growing and very profitable market. Currently, the market is highly dominated by the brand: Vente-privée (UK translation: Private-sales) which is the pioneer of the market, the inventor of this selling process in France and obviously the leading brand on the web. Following is a competitive scope of the market showing the 7 biggest brands and a short description of their differentiation points2: 1. [...]