An Analysis of the Current and Future Use of Internet Technologies of Boohoo.Com
This paper will examine the current and future use of internet technologies that Boohoo.com undertakes. ‘The company’s mission is to provide a visually stimulating, invigorating and evolving on-line shopping experience, which offers inspirational products, exciting promotions and unsurpassed customer service.’ (Boohoo, 2010)
The report discusses Boohoo’s background in relation to their current market position and strategies they have implemented. Boohoo is a private limited company owned by Khosla Vinney and the accounts are not accessible to the public, yet they have survived the recent economic downfall and continue to attract ‘over 67,690 visits per day,’ (Statbrain, 2010).
Porter’s Five Forces suggest that
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(Karagiannopulos, et al, 2005). Force one, degree of competitive rivalry; online shopping is an ever developing and evolving competitive market with high threat. Threat of new entry, force two, can be analysed by identifying the entry barriers involved. It is relatively easy to set up a website however with the economic downturn and lack of established reputation that new retailers have, this is seen as a medium threat. Force 3, threat of substitutes, is when consumers can buy from alternative sources such as high street stores. Boohoo are also threatened by items that their competitors offer which are of the similar price and style. However the brand image that Boohoo maintains increases consumer loyalty and therefore makes this a medium threat. Force 4, supplier power, is a medium threat Boohoo face as there are many retailers that suppliers can choose from; nonetheless it is not a high treat as Boohoo also can seek alternative suppliers. Finally buyer power, force five, is high as consumers can purchase from wherever they want, with the internet offering a vast variety of website, buyers do not necessarily offer loyalty which is why Boohoo need to differentiate from competitors and increase their strengths, as stated in the SWOT analysis below.
(Please see appendix two for more information)
Albert Humphrey’s notion of SWOT analysis when applied to Boohoo suggests that they are more attractive than using high-street retailer websites, offering styles