CanGo has taken advantage of the advent of e-commerce to expand its business.
The primary customer’s for the company are young people, Gen-Xers and Gen-Yers.
The company experienced exponential growth from 2008 to 2009.
The firm finances most of its operations using owners’ capital.
CanGo provides equal employment opportunities for all people.
Most of CanGo’s businesses such as online gaming, softcopy books, and videos are traded through an online platform.
The target customers for the enterprise are young adults who love the latest online entertainment and games.
The shareholders’ equity is $178.5 million whereas its liabilities are only $57.4 million. Therefore, the company finances most of its activities using its capital.
CanGo provides equal employment opportunities to everyone irrespective of the age, race, religion, or gender.
SWOT Analysis (I have entered a few already)
An online platform that has a broad reach
People all over the world can access CanGo’s products and purchase them through its online shopping platform.
So far, the company has a positive reputation of always delivering high-quality products, which is evidenced by the more than expected orders in January 2010.
Most of CanGo’s managers have been in the company since when it was founded, while others have worked in senior positions in various organizations.
The firm has a huge financial capital, with shareholders equity totaling about $178.5 million.
Few varieties of products that are being traded.
Lack of global outreach.
Poor communication skills.
An overreliance in on the just-in-time procurement method.
The company has few products on offer; therefore, its profits can significantly reduce if one item stops being popular among its current consumers.
Currently, the company only specializes in the United States market, which limits it from enjoying trade opportunities in other parts of the world.
CanGo’s communication methods are reactionary and thus ineffective in addressing business challenges such as delays in the delivery of ordered items.
Although just-in-time (JIT) procurement method is effective in reducing handling and storage costs, it is inefficient when there is an unexpected high-demand of a specific good. JIT supply process led to late deliveries of orders in January 2010.
Access to untapped foreign markets.
Room to expand the items sold on its online platform.
A chance to promote and sell digital products made by other companies.
Opportunity to introduce online games and videos watched by minors.
CanGo can venture into foreign markets and explore business opportunities.
The company can also increase the variety of items it sells on its online platform to attract more customers.
Besides selling its products, the firm can also promote and sell items made by other traders for a commission.
Currently, CanGo digital products are only accessible to people who are over 18 years; therefore, the company can introduce films and online games that can be played by minors.
Competition from other businesses
Lack of specialization.
E-commerce is simple to establish; therefore, various competitors can form similar businesses as CanGo.
Rapid changes in culture due to globalization can lead to a decrease in the demand for the company’s products.
Since CanGo does not have a unique type of commodity that it sells; therefore, it is hard for the company to retain its customers.
There is always a risk that some government regulations such as taxation, and guidelines on the sale of digital products can adversely affect the firm’s performance.
Increase the variety of goods offered.
Expand to foreign markets.
Reduce its overreliance in the just-in-time procurements method.
Introduce products suitable for minors.
CanGo should increase the variety of the products that it sells to spread the risk of a failure in one product.
The business should expand to foreign markets to exploit opportunities in these regions.
CanGo should increase its inventories and reduce its over-reliance on the just-in-time method to reduce cases of shortages when it experiences an unexpected high-demand for its items.
The business should develop digital products that can be used by minors so that it can exploit these untapped market.
A lot of capital.
CanGo can use its positive reputation to market its products. The higher than expected demand in January 2010 shows that customers like the company’s digital items.
The firm has a lot of capital which it can use when venturing into foreign markets.
Currently, CanGo has few competitors; therefore, it can ensure that its products are priced at a level that enables it to make maximum profits.
Most of CanGo’s managers have been in it since when it was established. Therefore, they are competent on how to run an e-commerce business.