Competitive Analysis: Buy.Com Amazon and Overstar

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Competitive Analysis

In a hyper-competitive world economy and with increasingly rational buyers, the competitions among e-commerce businesses are becoming more and more intensive. Given the priority of competitiveness in modern companies, practitioners of competitive intelligence need to come to terms with what business and competitive analysis is and also how it works. In order to survive in such a competitive environment, a company must deliver superior customer value over its competitors. Three competitors that CanGo analyzed are Amazon.com, Buy.com, and Overstock.com. We focused on areas like personnel, products, and facilities.
Amazon is an American electronic commerce company that has become an icon of internet business. The
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Stockholder’s equity reported on Overstock.com 2009 Annual Financial Statements is negative $3 million. (Overstock.com, 2009) and Overstock.com has not had a profitable quarter since 2004. (Coenen, 2009) Stockholders should be concerned with Overstock.com management, as this is not first time the company is restating their financial statements. In February, 2006, Overstock.com announced it would restate 4 years of financial statements, 2002 though 2005, due to improper accounting of freight costs. (Taub,2008) It appears that the company has some serious internal control and reporting issues that need to be addressed.

CanGo
Strengths
• Resources
• Strong brand names
• Good reputation among customers
• Recognizable brand
• Positive relationship with employees

Weaknesses
• Employees under trained.
• Insufficient suppliers
• Unplanned products
• planning
• Lack of industry knowledge
CanGo has the ability to compete with their competitors in any facet of the industry. There are high profit margins in the e-commerce industry. There is an increase in demand in the online gaming industry. There are no major barriers to entry and the future growth potential is limitless.

Coenen, T. (2009). More Accounting Mistreatment by Overstock.com. Retrieved February 11, 2010, from

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