ETSY has had a rough couple of months financially as it tries to get its footing right in the e-commerce platform. The company has initially made a wrong move when it over-promised its stakeholders but was unable to deliver. The mistake was rectified this financial year when the company set realistic goals and then worked hard to deliver above expectation. The company is well on its road to success if it can implement the recommendations described below.
The customer base that ETSY appeals to is distinct. The segment of the population acts the way it does because of various factors that match ETSY's performance to their needs. Identifying this factors is crucial to the continued success of the company. This will help to tailor customer relations and marketing programs in a way that will lead the company into sustainable productivity. ETSY's success with its customers will depend on a regular evaluation of the customer base. The composition is likely to evolve as products, needs and competition changes. ETSY will therefore need to keep up to speed with this segments because they hold the key to consumer information.
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The competition will also provide great insight into the situation at hand. The competition offers similar services which appeal to some of the target market that could belong to ETSY's portfolio. The competition could teach ETSY what they are doing wrong. This includes simple operational activities that may inconvenience the platform or lower it's efficiency. This is because older players like Amazon are more likely to know the fundamental ropes better. They may therefore offer insight if researchers from ETSY compare the customer experience. Reading reviews may not give a good conclusion. The approach to then adopt is a strategic one that will bring focus into the pursuit of one excellent condition for the potential user.
The e-commerce platform that ETSY operates in is a capability driven. ETSY must utilise all the skills at its disposal to ensure excellence, ease of access and speed. The systems should not cost the consumers more than is necessary as this will diminish the demand for the product. A suspiciously low price will do the same. The scale of the organization as well as its scope will determine the necessary functions and cost. ETSY can outdo its competitors by concentrating on an entirely different performance criteria. This move will keep them ahead of the game and change the playing field. ETSY may also avoid pitfalls of similarity whereby companies ape each other. Instead, they can compete on a platform of horizontal integration. This means that they can monetize other aspects of their operations to diversify the streams of income.
Vertical integration could also be beneficial once ETSY gets its finances in order. They may also move towards this independence by scaling down operational costs. Outsourcing some functions is the most vital cost cutting measure for e-commerce dependent firms. Once this is done through leasing instead of buying, the company's performance can be adjusted accordingly. The extra revenue can then be channeled into tailor made customer services and products. This demographic needs to be different from the typical e-commerce utiliser. The group will be developed from the customer base who are the least likely to engage in the activities. An example is ETSY's diverse product offering that could target markets that are outside the United States and further out. The focus could also be put on repeat consumers instead of one time consumers. This will consolidate the market base and keep the company profitable. Finally, building on the brand name will help give genuine individual sellers a chance to grow together with the platform.
References
https://www.bloomberg.com/news/videos/2016-08-02/why-things-are-looking-up-for-etsy
