Bus 690 Case Writeup
Discussion Questions – BUS690 Fall 2009
Case 1: Saffronart.com: Bidding for Success
1. Identify the positive and negative effects of the general environment faced by Saffronart.com.
Positive:
Economic Segment: Global positive macroeconomic trends, Increase in economic productivity. India is now emerging as an international presence in business
Demographic segment: Trend in international tastes, Art works are not only selling in India or New York but worldwide, which extend the geographic population size that may interested in Saffronart’s art.
Sociocultural Segment: Indian cultural products-from fashion to film to fine art-are gaining in popularity abroad.
Technological Segment: Increase in online trading/e-commerce facilitates brand promotion, Big percentage increase in internet users in India.
Physical environment segment: Convenience and safe in international shipping and long-distance shipping.
Global segment: Prosperous in art related market. Artists are more willing to create their arts due to the good selling.
Negative:
Global segment: The entry of “investor buyers” could raise the price further in a short time and introduce the threat of considerable volatility into the market.
A big difference in price of the same art between Art Galleries
2. Identify the 5-forces of the industry environment. How is Saffronart.com positioned relative to each of them?
Five forces are:
1. Threat of New Entrants (It indicates what prevents a firm from entering a new market and expected retaliation from current industry participants)
It has been a long time since Saffronart was founded (Year 2000). Minal and Dinesh have long-standing relationships with artists and buyers. Now Saffronart is the leading firm in the newly emerged Indian art market which has a good reputation. In addition, Saffronart gain a huge success in the auction area.
2. Bargaining power of suppliers ( Suppliers’ potential to increase price or reduce quality)
Case 1: Saffronart.com: Bidding for Success
1. Identify the positive and negative effects of the general environment faced by Saffronart.com.
Positive:
Economic Segment: Global positive macroeconomic trends, Increase in economic productivity. India is now emerging as an international presence in business
Demographic segment: Trend in international tastes, Art works are not only selling in India or New York but worldwide, which extend the geographic population size that may interested in Saffronart’s art.
Sociocultural Segment: Indian cultural products-from fashion to film to fine art-are gaining in popularity abroad.
Technological Segment: Increase in online trading/e-commerce facilitates brand promotion, Big percentage increase in internet users in India.
Physical environment segment: Convenience and safe in international shipping and long-distance shipping.
Global segment: Prosperous in art related market. Artists are more willing to create their arts due to the good selling.
Negative:
Global segment: The entry of “investor buyers” could raise the price further in a short time and introduce the threat of considerable volatility into the market.
A big difference in price of the same art between Art Galleries
2. Identify the 5-forces of the industry environment. How is Saffronart.com positioned relative to each of them?
Five forces are:
1. Threat of New Entrants (It indicates what prevents a firm from entering a new market and expected retaliation from current industry participants)
It has been a long time since Saffronart was founded (Year 2000). Minal and Dinesh have long-standing relationships with artists and buyers. Now Saffronart is the leading firm in the newly emerged Indian art market which has a good reputation. In addition, Saffronart gain a huge success in the auction area.
2. Bargaining power of suppliers ( Suppliers’ potential to increase price or reduce quality)