BUS 690 Case 1 Saffronart
Case 1: Saffronart.com: Bidding for Success
1. Identify the positive and negative effects of the general environment faced by Saffronart.com.
Positive effects: For Demographic segment, Indian art has become trend in international tastes. Indian art works are more popular in the international market. Art works are not only presenting in India or United States markets but also extend its market to the worldwide. It extend the population size that may interested in Saffronart’s art in the world. For Economic segment, global positive macroeconomic trends and increase in economic productivity. India become as an international presence in business. For Sociocultural segment, Indian cultural products from fashion to film arts are more popular in the international market. For Political segment, India begun to lower tax rates and trade barriers which encourage positive competition of business. For Technological segment, increasing online trading and e-commerce facilitates self-branding. More and more Internet users in India. Exhibit 2 shows that a big percentage increase of India Internet users. For Global segment, artists are more willing to create better works of art because of good selling.
Negative effects: For Global segment, investor buyers will buy the local art goods at a lower price and sell at a higher price abroad. It causes a big difference prices between art galleries and market.
2. Identify the 5-forces of the industry environment. How is Saffronart.com positioned relative to each of them?
1. Threat of new entrants: Dinesh and Minal are having long-term relationships with buyers and artists. Saffronart is emerging leader in the Indian art market which has a good reputation. Also, In Saffronart gains a huge success in the auction area.
2. Bargaining power of suppliers: Saffronart set the reservation price for the art works based on the recent price in history.
3. Bargaining power of buyers: Saffronart give a comparable price of the artwork for buyers’
1. Identify the positive and negative effects of the general environment faced by Saffronart.com.
Positive effects: For Demographic segment, Indian art has become trend in international tastes. Indian art works are more popular in the international market. Art works are not only presenting in India or United States markets but also extend its market to the worldwide. It extend the population size that may interested in Saffronart’s art in the world. For Economic segment, global positive macroeconomic trends and increase in economic productivity. India become as an international presence in business. For Sociocultural segment, Indian cultural products from fashion to film arts are more popular in the international market. For Political segment, India begun to lower tax rates and trade barriers which encourage positive competition of business. For Technological segment, increasing online trading and e-commerce facilitates self-branding. More and more Internet users in India. Exhibit 2 shows that a big percentage increase of India Internet users. For Global segment, artists are more willing to create better works of art because of good selling.
Negative effects: For Global segment, investor buyers will buy the local art goods at a lower price and sell at a higher price abroad. It causes a big difference prices between art galleries and market.
2. Identify the 5-forces of the industry environment. How is Saffronart.com positioned relative to each of them?
1. Threat of new entrants: Dinesh and Minal are having long-term relationships with buyers and artists. Saffronart is emerging leader in the Indian art market which has a good reputation. Also, In Saffronart gains a huge success in the auction area.
2. Bargaining power of suppliers: Saffronart set the reservation price for the art works based on the recent price in history.
3. Bargaining power of buyers: Saffronart give a comparable price of the artwork for buyers’