Everest Teams Ltd - A Case Study
May 2008 (University of Liverpool)
Benny began his business by selling goods from a market stall at weekends throughout his time at university. The sales were excellent which further enhanced his desire to create his own business. His key success was his ability to source products from a variety of countries, particularly China. Benny quickly realised the importance of creating successful relationships with the Chinese suppliers and developed these relationships to enhance his business.
Benny then developed his business venture as an eBay trader. He continued to import a variety of products in order to test the market response and tastes. He quickly realised that the market demanded heat press machines, particularly as there were not many UK sellers, therefore Benny identified his Unique Selling Points (USPs) to be both price and product.
After successfully developing his online business, Benny diversified his offerings to include stationery, mugs and computer accessories, selling on both eBay and also through his own website. However, he found his products were too common and there were too many competitors at that time. In 2005, the company decided to concentrate on heat press machinery as the market was highly profitable.
The focus on target customers was altered and aimed towards businesses and corporate users (however with a small volume of products being sold directly to home users). Furthermore, the revenue mix between products and services became 90% to 10%, with product sales mainly occuring through direct and auction selling online and the services being delivery, repairs and machinery maintenance. This provided a small but constant income.
Benny considered his selling options and decided that online selling was the best option for his products as interent shopping is commonplace in the UK. 85% of his company sales are now completed online, with the remaining 15% being ‘walk-in’ sales. Benny identifies his key success factor to be the importation of products from China. With the high volume of orders he places, his company receives low cost prices from the suppliers which they are then able to gain profit on selling to the UK customers.
Everest Teams Ltd currently employs three employees to help with stock, sales and administration. As the business is growing rapidly, Benny hopes to double his employees over the next year with the goal being thirty employees in five years time. He has aspirations to develop his product offerings and fully dominate the heat press machinery market.
(For further case information, please visit: http://search.ebay.co.uk/_W0QQsassZeverest-teams)
- Why is it important to establish an organisations USPs?
Consider: How they can be used for marketing purposes and business development.
- How important is the ‘service’ element of Benny’s business?
Consider: The amount of revenue generated from providing such services, how constant the reveune is and the repeat business experienced by the company.
- Why is online selling a good option for Everest Teams?
Consider: Reduction of overhead costs in comparison to a shop etc. Product development, ease of access (24 hours a day, 7 days a week).
- Imagine you are a business development consultant working for Everest Teams. What recommendations would you make for the development of their business?
Consider: Differentiation, web-based and physical marketing strategies, and the viability of employing more staff, the branding of the company and the long-term planning and aspirations of the company.