Case Study Gazelle in 2012

GAZELLE IN 2012

1) What are the key differences between Gazelle and its competitors?

First, Gazelle buy back owned electronic devices and sell them to secondhand-demand consumers. Gazelle only concentrates on high demand products instead of wide range of goods. Second, Gazelle created a searching engine so that Gazelle can provide the best price for the products. This software scanned popular market such as eBay and Amazon to determine the ultimate attractive price for his products. Thirdly, Gazelle provide boxes while shipping so that consumers do not have to pay for during shipping process. Therefore, it increases consumer satisfaction. Fourthly, Gazelle also mixed unsalable goods in the shipped packages to make those unsalable goods become salable. Finally, refundable items due to poor condition will be offered a lower price to the seller.

2) How should Gazelle use its resources to grow on its buy side?

One of the method Gazelle can use its resources to grow is to focus on retail partnerships. Though out partnerships with other famous company such as Costco, Gazelle can also improve its leverage. It is very difficult to achieve big scale of operation on its own. There are a lot of other negative factors which require a tremendous finance to stand on its own foot. Executing retail partnerships, Gazelle can save a lot of cost such as inventory and storage. After gaining enough reputation and loyal consumers, it is the time that Gazelle can establish on its own without worrying so much about other operation costs and risks.

Should Gazelle launch a direct-to-consumer site on its sell side?

Since Gazelle has gain a large amount of reputation lately, Gazelle should launch a direct-to-consumer site on its seller side. According to Gazelle in 2012, “Exhibit 9,” the company has the largest customer visitors