Business Model Of Cconma Essay

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Cconma is an online shopping mall in Chung-Ju, South Korea founded in 2005 by Mr. Tong Hun Choi. Similar to other online shopping e-commerce sites main goal of company is profits, however it had a completely different vision and business model. It has grown successfully since its founding by focusing on the happiness and well-being of its members including employees, customers and sellers. The company’s vision, rooted in an ethic of corporate social responsibility, is to build a happy and healthy community. 1Their mission is maintaining its business statement of creating a healthy and happy community for a happy life. by providing high quality goods to its customers, while establishing links with the community around it and …show more content…

For instance, advertising on the main web page is as expensive as newspaper or TV advertisements, which gives the power to the merchandisers. All sales promotion activities are organized at the sellers price. On the other hand, Cconma transfers its power as a merchandiser to its members, both sellers and customers.

Being innovative

The company’s innovative business model and strategies start from its vision to build a “happy and healthy community. This, in fact, sounds like vision of a nonprofit organization, which is quite different from companies in the same industry. Company has minimized its own marketing expense by fully utilizing social network services and increases revenue by enhancing the loyalty of its members. Cconma transfers its power as a merchandiser to its members, both sellers and customers, in three ways:
1. Members of the platform organize all sales promotions.
2. There is no sales promotion expense for sellers.
3. The company aims at supporting both sellers and customers instead of controlling them. Company initiated “prepared-to-order” marketing for selling beef, a kind of group buying in 2007. Twice a week, a livestock farmer on the platform slaughtered a cow whose meat quality was of the highest degree certified

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