NEED IRAC FORMATTING 2theMart.com, was conceived in January 2009 to launch an au
ID: 371796 • Letter: N
Question
NEED IRAC FORMATTING 2theMart.com, was conceived in January 2009 to launch an auction Web site to compete with eBay, Inc. On January 19, 2theMart announced that its Web site was in its “final development” stages and expected to be active by the end of July as a “preeminent” auction site, and that the company had “retained the services of leading Web site design and architecture consultant to design and construct” the site. Based on the announcement, investors rushed to buy 2theMart’s stock, causing a rapid increase in the price. On February 3, 2theMart entered into an agreement with IBM to take preliminary steps to plan the site. Three weeks later, 2theMart announced that the site was “currently in final development.” On June 1, 2theMart signed a contract with IBM to design, build, and test the site with a target delivery date of October 8. When 2theMart’s site did not debut as announced, Mary Harrington and others who had bought the stock filed a suit in a federal district court against the firm’s officers, alleging violation of the Securities Exchange Act of 1934. The defendants responded, in part that any alleged misrepresentation were not material and asked the court to dismiss the suit. How should the court rule and why?
Explanation / Answer
1. Does your selected business have differentiated products or services? If so, what is the basis for this differentiation from the competition?
Yes, they have unique product, it is differentiated through processing of meats and quicker delivery services . This is realized due to its
.Processing plants
.Volume of supply capability
.Great supply chain network
It produces several different products, like Buffalo wings, boneless Buffalo wings and is an innovator in the industry.
2. Does your firm have a cost-leadership position in this business? If so, can you identify which cost drivers it uses effectively to hold this position?
They do not have acost-leadership position, but are differentiated due to their range of products, service and volume of operations.
And it has its own chicke and meat producers, to facilitate the volume business, without being a cost leader.
3. What is your firm’s approach to the market? If it segments the market, identify the scope of competition it is using.
It does not segment its market. It works on B2B business, and approaches the blanket way.It supplies products to each type of food outlets, and generally depends on the large contracts and partnerships.
They supply to all type of restaurants.
They sell at supermarkets.
It supplies to Prisons as well.
So by ditributing to multiple channels they target a large spectru of markets, though there is partnerships based on segments its mostly to most frequented restaurant chains.
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