The Best When He Wrote By Michael Cox

1072 Words5 Pages
I think that Michael Cox described Craigslist the best when he wrote, “Craigslist consists of local classifieds and forums for Internet communities worldwide” (2006). It is a website that hosts all of these things simply and for free. There are no advertisements on the webpages, it does not cost anything to post (most of the time), and it is user-friendly. Craigslist makes its’ annual revenue through charging a small fee for employment postings in three cities. Otherwise, posting is one hundred percent free. Craigslist is very user-friendly because of its simple design. R.V. Scheide describes it as “rows and columns of text against a solid background” (2006). There are no frills to the page, it simply shows what Craigslist offers.…show more content…
Otherwise, they leave supplier power to the individual suppliers of products in their websites. According to the textbook, “The threat of substitution is high when there are many alternatives to a product or service and low when there are few alternatives from which to choose” (Baltzan, 2013). Craigslist handles this by being unique. They are not in this for the profit. Newmark says, “Most newspapers, especially the big chains, view themselves as profit centers, where they want relatively high profit margins. We view ourselves as a community service, and we’ve kind of proven it, by running an almost completely free site for over 10 years.” (Scheide, 2005). Newspapers cannot compete with Craigslist because view ads as profit. According to the textbook, “The threat of new entrants is high when it is easy for new competitors to enter a market and low when there are significant entry barriers to joining a market” (Baltzan, 2013). Craigslist handles the threat of new entrants by simply being better than the new people. They keep their low prices and simple design, whereas most companies will have advertisements on their pages or charge more. The fact that Craigslist is not about profit keeps them ahead with new entrants. According to the textbook, “Rivalry among competitors is high when competition is fierce in a market and low when competitors are more
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