Clipotmania is an online business which is focused on delivering to customers various brands of earnings. At the heart of their strategy, is an emphasis on keeping costs low, specialization and going into areas where they can take advantage of their unique brands. However, the firm is facing challenges with launching and developing their e business venture. To fully understand how they can adjust requires examining key issues and the impact they are having on the company. Together, these elements will illustrate how Cliptomania can grow and evolve with these problems. (Bailey, 2011) (Brown, 2012)

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Discuss the strategic issues faced by the company in launching and developing their e-business venture.
The greatest challenges Cliptomaina are facing is: locating a reliable supplier and controlling costs. In the case of a reliable supplier, the firm is having trouble finding an organization, which can provide them with consistent levels of merchandise. This is because they demand certain styles and quality. Yet, the tastes of consumers are constantly changing. When this happens, it is difficult for them to meet these requirements. (Bailey, 2011) (Brown, 2012)

Declining costs is when the firm needs to reduce their prices to keep up with the proliferation of competing businesses. At the same time, various organizations such as Yahoo and Paymentech are raising their fees. This is forcing them to have trouble with maintaining a stable cost structure. (Bailey, 2011) (Brown, 2012)

These issues are problematic, as they have the possibility of negatively impacting their business model. As a result, the firm needs to evolve with these issues and become more responsive to the demands of stakeholders. This requires utilizing a strategy that will reduce costs and having an assortment of products available. (Bailey, 2011) (Brown, 2012)

Provide your recommendations and analysis.
The best recommendations are for Cliptomania to locate a number of reliable suppliers. This requires working with a variety of third party providers and consistently increasing them. Over the long term, this enables the company to provide customers with the merchandise they demand at the lowest prices. (Bailey, 2011) (Brown, 2012)

To reduce costs, the firm needs to establish a strong relationship with a hosting provider. They can offer them with the ability to reduce their expenses and improve their ability to reach out to larger segments of customers. To help in achieving these objectives, the company should look into the using Google Ad Words to increase their ranking on the search engines. This will enable them to attract and acquire more cliental. (Bailey, 2011) (Brown, 2012)

At the same time, Cliptomania must utilize new technology and platforms to keep their costs low. For instance, one avenue the company could utilize is social networking. This is when they will establish different Twitter and Facebook pages to promote their products / services to new cliental. These areas will allow the firm to: take advantage of new opportunities, reduce their expenses and maintain a lower cost structure. (Bailey, 2011) (Brown, 2012)

If this kind of approach is taken, the company can expand and reduce their expenses over the longer term. This something many of their competitors failed to do in the past. In these situations, they did not understand how shifts inside the sector and their business model impacted their organizations. As a result, the most important factor for overcoming these challenges; requires using new ideas that decrease costs and attract more customers. (Bailey, 2011) (Brown, 2012)

Clearly, Cliptomania can grow and evolve with these changes by taking a different approach. This means working with numerous third party providers, streamlining their operations and utilizing alternative avenues to identify new customers. If this kind of strategy is utilized, it will help the firm to adjust with these changes. This will enable the company to grow and become more flexible.

  • Bailey, M. (2011). Internet Marketing. Hoboken, NJ: Wiley.
  • Brown, C. (2012). Managing Information Technology. Upper Saddle River, NJ: Prentice Hall.