Gazellein 2012 Essay

1456 Words May 25th, 2014 6 Pages
Gazelle in 2012

Gazelle is a leading online market to purchase and sell used electronic
devices. However, its legal name is “Second Rotation” but customers see it
as “gazelle” which was chosen for branding and operational purpose by
Gannet, Aurelien McElhiney the co founders of Second rotation.

How did gazelle attain sustainable competitive
advantage?
The secret of Gazelle for attaining the sustainable competitive advantage (a
competitive advantage that is difficult for competitors to imitate) lies in
wisely considering the business opportunities at the right time. The co
founders observed different practices made by the people i.e. they did not try
to recycle or sell their electronic devices. Rather they would just leave
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This provides Gazelle an opportunity to
grow.

Intermediation:
Ganot is currently thinking to switch the gazelle as an intermediary between
sellers and buyer’s .This would get larger profits with minimum liabilities
for gazelle.

Social trends:
Social trends keep changing but world has now started thinking about the
environment critically. They do not waste the product. They either sell it or
recycle it. This is an opportunity for Gazelle to make growth.

Threats: With all the opportunities, available Gazelle indeed is
threatened by external environment. Its rivals including eBay and others are
a constant source of threat.
Major threats include threat of imitation and the bargaining powers of sellers
and buyers. Porter’s five forces model explains it at best.

Internal Analysis:
VRIO and gazelle: VRIO stand for valuable, rare, inimitable and
organized respectively. While analyzing a company it kept in view to
discuss VRIO. Gazelle has been offering valuable, rare, inimitable and
organized goods at the same time, which led it to acquire sustainable
competitive advantage. (See appendices)

Economies of scale and scope: A company reaches economies of scale

when cost incurred for the products gets lesser as the quantity of the goods
increases. Economies of scope are related to acquiring lower costs when
offering or producing a couple of products together. Gazelle in this regard
attained both while selling and buying a large number and variety…

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