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N.at is a full-line mail-order and e-commerce company based in Graz, Austria. The company experiences saturation in the home market AT and expects further growth by expanding the online shopping club to CZ. The company aims to enter the market by the end of 2017, reaching a market share of 10% (5,54 Million Euro) in 2019. The break down of borders, increase of competition and customer empowerment forces SME companies with internationalisation ambitions to particularly evaluate e-market specifics: customer behaviour within the Age of You, established quasi standards, initial investments to meet standards and long-term investment to remain competitive.CZ is the most well developed e-commerce market in CEE and does not obtain any e-business specific barriers or limitations. Due to market size, country specific substitutes and competitive situation CZ is promising, but also challenging. Thus entrants shall evaluate current competitiveness in order to detect insufficiencies. Experts rated shop-attraction and selling-proposition (USP definition, branding and positioning), as well as social targeting and societing as the most important success factors for online shopping clubs. Within the internal analysis of neckermann.at sever insufficiencies in these success factors have been detected. Thus the company shall revise the social media strategy, community orientation, USP definition, positioning and branding before internationalising. The market entry mode for n.at shall be direct export, as the company requests to obtain high power level, low investment intensity and easy withdrawal possibilities. After establishing competitive USPs the company shall obtain the cost leadership strategy with added value along the process chain, to decrease transactional costs for customers and define differentiation potential to competitors. Due to centralisation concerns of the company, the distributional setup shall be built along the warehouse in Graz, which handles orders and returns, delivered to CZ with logistic partners. In communication the company shall stick to three channels max: SEA/SEO, Facebook and newsletter. The investment shall be spread onto the channels according to the sequence the company is in. Finally Slovenia, Poland and Slovakia could be additional markets to enter if CZ was successful.
