Client: Leading Ecommerce

company
Industry: Informaton
Technology
Business Impact:
Signifcant actonable
intelligences
Compettve perspectve
www.blueoceanmi.com
Evaluating the cost of ownership of a new Ecommerce
website aiming to gain competitor perspectives
Business Challenge
In the hyper-compettve Ecommerce industry with dynamic business models,
Blueocean Market Intelligences client needed to understand the costs associated
with setng up a new Ecommerce website for retail and digital goods.
The client wanted to also gain a compettve perspectve so that an appropriate
soluton could be devised based on the scale of the merchants business
requirements (small, medium or large).
Soluton
The study started with the 360 Discovery Approach, rounded up informaton
available on the respectve vendors site and other publically available sources to
identfy various vendors and their services in the space. Then, to arrive at a few
decisive and suitable number of assumptons of prime importance, the costng
model for the client was prepared.
Identfying diferent types/layers of vendors (on premise licensed sofware
vendors, hosted end-to-end Ecommerce platorm vendors, payment service
providers, niche players etc.) that a merchant or seller needs to te up with in
order to launch and perate an Ecommerce Webstore
Identfying various costng optons available to the merchant through various
business models (on premise/on demand/SaaS)
Case
Study
About Blueocean Market Intelligence
Blueocean Market Intelligence is a global analytcs
and insights provider that helps corporatons realize
a 360-degree view of their customers through data
integraton and a mult-disciplinary approach that
enables sound, data-driven business decisions.
Since we live in a highly dynamic and mult-
dimensional world, we believe the most efectve
business decisions come from a synthesis of data
streams and not from one-dimensional sources.
Using our 360 Discovery approach, we ensure the
comprehensive use of all available structured and
unstructured data sources, enabling us to bring
the best to bear against each engagement. Strong
decision support is enabled through a combinaton
of analytcs, domain expertse, engineering and
visualizaton skills brought together in harmony.
Leading companies have benefted from our
partnership with fnancial growth, 360 views of their
markets and competton, and improved customer
acquisiton, satsfacton and retenton.
For more informaton or to request a consultaton,
please email info@blueoceanmi.com or visit us
online at www.blueoceanmi.com.
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Identfying vendors that ofer services across layers
Understanding the cost structure of identfed vendors
Finding out the total cost of ownership for retail merchant
that ofers products like clothing, shoes, accessories etc.
under various business models
The same was repeated for digital goods merchants,
ofering products like sofware (distributed online),
online gaming, consumer apps etc. under various
business models
Findings of the costng model were also summarized in the
form of a representatonal deck with powerful visualizaton
for the client as fnal delivery.
Outcome
Blueocean Market Intelligence was able to share signifcant
and actonable insights from this deep dive into the best
practces around costng, pricing and valuaton of websites
in the Ecommerce and the consumer app distributon space.
Amongst them was one fnding that indicated that although
the cost structure for most consumer app online marketplaces
was around the 30% industry standard baseline, the clients
app store clearly stood out as an excepton.
Another interestng insight suggested that in the case of the
distributon of sofware through a companys own website or
through online markets, the expenses involved are inversely
proportonal to the costs of transactons.
The cost model developed by Blueocean Market Intelligence
was well-received and leveraged by the client to further map
additonal vendors across the Ecommerce space. It was also
used to compare the positoning of the clients services in the
same space for diferent features.