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Problems Consequences

Bizrate.com is facing a problem of deciding whether to focus on its original market research business or expand into e-commerce as its e-commerce revenues grow. Possible solutions are to focus only on market research, only on e-commerce, or continue both with gradual e-commerce adaptation. The document recommends continuing both with Bizrate's core strength in market research and gradual e-commerce integration to capture new markets while diversifying.

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Ankita Nair
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81 views2 pages

Problems Consequences

Bizrate.com is facing a problem of deciding whether to focus on its original market research business or expand into e-commerce as its e-commerce revenues grow. Possible solutions are to focus only on market research, only on e-commerce, or continue both with gradual e-commerce adaptation. The document recommends continuing both with Bizrate's core strength in market research and gradual e-commerce integration to capture new markets while diversifying.

Uploaded by

Ankita Nair
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Bizrate.

com
BizRate is a market research firm that collects point-of-purchase customer feedback data
from retailers. He then draws his conclusions are available to consumers in the form of
"BizRate ratings stars" that appear on the site.

What problem exists, and why?


In October 1999 (Red October), BizRate has a number of e-commerce initiatives have been
so successful that the company's e-commerce revenues are now on the verge of eclipse
revenue from the research division's BizRate. This led to a debate on the future aim of the
company; i.e. whether to continue both the research idea side and e-commerce hub
together or choose between one of the two. This problem mainly exists because this
decision makes a big impact on the financing that may be available for the business in the
future. It affects the goals of the company and leads to conflicts and confusions about the
main priorities.

What are possible solutions to the problem?


Problems Consequences

1. Stick to the research side of the If a decision is taken to concentrate only on


business model to carry out the market research area of the business, it
operations focused only on the can help increase or stabilize the retention
original research portal and surveys rates of the merchants and customers and
that BizRate initially provided. give a unique aim to the business. Since the
business has a good history of success in this
field, it will be a risk free solution. However,
this will take away all of the advantages that
can be gained from the booming and
emerging e-commerce sector services
provided and also disturb the financing
made available to it.
2. Venture into the new E Commerce If the business focuses on only the e-
section which involves modifying all commerce section, it can try and establish
goals to match the objectives of the its share in the market and reach higher
new competition in the e-commerce market caps in a shorter period of time.
sector and leave the market research However, a large amount of risk is involved
sector as a whole. because BizRate does not have much
experience in this sector, and already a
growing amount of competition from other
websites can be observed.
3. Continue with both the areas of the If BizRate decides to keep both areas of the
business, with core strength of business, it can achieve a share of profits
market research and a gradual and knowledge from both the sectors but
adaptation of e-commerce this can lead to inefficient management of
applications. resources and lack of commitment to any
specific goals of the organization.
Final Suggestion
Bizrate should go with the third alternative to go with it’s core strength of market research
and an adaptation of E Commerce applications to capture the growing market.
Market expansion
It will help expand into newer regions and markets. This expansion will give the company
exposure to new consumer groups. Increase the overall consumption rate, as well as
diversify income streams. Also, it will give the company related expansion exposure
regionally as well as internationally.
Product diversification
It will also lead to product diversification. By adding new products, the company will be able
to penetrate deeper into existing markets bye exploring new consumer groups, and new
target consumer groups. This will also diversify income streams for the company, and
increase its overalls hare of the market.

Both these possibilities can be realized because BizRate com invests in consumer
research and have a strong financial standing.

Name: Ankita Nair

SAP ID: 80303180126

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