Gazellein 2012 Essay

Decent Essays

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 …show more content…

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

Get Access