This report analyses the strategic elements related to MusicJuice.net.
1. What are the major opportunities and challenges involved in Internet (as opposed to bricks-and-mortar) start-ups?
Both formats face challenges and opportunities that are both unique to each of them but also some that are common.
Major opportunities of Internet (over Bricks-and-Mortar) start-ups
A business model can be created for the local market but then it is relatively easy to make it scalable to access to a global market or specific geographies in a global market. This can happen through change in URL and website languages and marketing with no restrictions on location. So greater market size and geography is available. Physical store presence is required where success is largely location dependant. Requires greater capital investment in building and stock. Expansions require greater effort due to need to have a physical presence in strategic locations.
Access to cheaper intelligent marketing techniques such as google click-ads, push advertising, custom advertising, personalised webpages that suit personal preferences, or email inbox alerts that are personal and directed at the individual. This can be local and/or global to cater for target market.
Also able to use traditional marketing techniques of bricks-and-mortar companies. Marketing can make use of all types of media including the internet but has to be targeted at a market that can access the physical store/s.
Anywhere, anytime access (24-7-365) to company content, products, services. Customers can even use cellphones to access, browse or purchase products from internet companies. Access, browsing and purchasing for customers is largely limited to store operating hours.
Access to customer data, if not through forms filled in online then through purchase behaviour and preferences. This data can be “mined” and used for relationship management, advertising and upselling. Customer