Gazellein 2012

1448 words 6 pages
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
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Moreover, Gazelle has developed product efficiency too which is attained by keeping the cost lower in long run.

External Analysis:
Porter’s five forces model:
Porter five forces model explains all those forces which affect the organization externally. (See appendices)
 Threat of new entrants:
There is possible threat of competitive entrants apart from current competitors.  Threat of substitute services:
There is a minimum threat that a new service evolutes in this industry.
 Bargaining power of buyers:
With the presence of other service providers in the market, buyers might want the used products at lower prices.

 Bargaining power of sellers:
Sellers may also want to sell their products at a higher price.

 Current rivalry:
Current competition may become hard as the competitors grow in various aspects. But currently the rivalry is moderate because gazelle has a competitive advantage over other rivals.

PEST Analysis:
PEST stands for political, economic, social and technological factors respectively. (See appendices)

There is less political influence on the working of Gazelle but there might be a threat of more legislations and taxes in future.

It refers to the interest rates, inflation rates etc. the economic factors of the region have now become stabled after the financial crisis of 2007-9. A recession season again may cause changes in the profitability of