Evaluating Competitive Advantage Social Media Marketing

Evaluating Competitive Advantage Social Media Marketing

Scoopon has given high importance to the social media in order to make its business model a great success. Some of the key benefits attained by the Scoopon with the help of social media can be given as below:

  1. Advertisement: Scoopon make advertisements on social media so as to take benefits of the ever increasing audience on the social media so as to capture maximum sales through online portal. These advertisements displayed on the social media would be paid on per click basis which creates the major part of the purchase for any e-commerce website in current age marketing strategy. [More information on sales and advertising assignment help is available HERE]
  2. Brand awareness and attachment: Relating the e-commerce portal of a company with social media would help them to connect well with its potential customer base and company would get easy chance to create the brand awareness through social media.
  3. Communities’ development: Scoopon has developed social communities with the help of social media channel. These social communities developed by the company help them by gathering their customer and sharing experience regarding the products of the company and giving their valuable feedback about the company’s product.

Benefits and limitations of using e-commerce for this particular business

The current business model of Scoopon which is regarding selling lifestyle items to the various users of the company such as the apparels, accessories, electronics and grocery items has several advantages as well as limitations with the help of e-commerce which can be given as below:


  • Easy customer access points: e-Commerce helps in order to provide such business an easy access to the several customer points. With the help of several techniques such as the search engine optimisation, social media ads and other techniques marketers are easily able to place their advertisement on the popular portals and it becomes easy for them to maintain a heavy customer flow which would have not been possible otherwise.
  • Value delivery model: Due to the e-Commerce model of such business marketers are able to provide the several branded products at much lesser prices in compared to the marketers having physical presence. Due to this unique model which saves cost for the
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    marketers, e-Commerce creates the USP for the business.

  • Wide presence: Following the e-Commerce business process for such business model would allow the marketers in this segment to have wider reached would have not been possible otherwise by following the physical presence model.
  • Low or No inventory management: Most of the businesses in this segment do not maintain any inventory in order to save on the cost part. But Scoopon being big market players in this business segment maintain low level of inventory so that actual delivery time for the customer can be reduced and faster delivery can be achieved by maintain the inventory. While in physical outlet model company would have to maintain much higher level of inventory in order to meet the customer needs on demand.


  • High competition: e-Commerce does not apply barriers to the entry of any new player in the market as compared to physical outlet models which up to some extend put several barriers to entry. Hence due to absence of entry barrier there is fierce competition in this industry.
  • Unreliable marketing strategies: Marketing strategies adopted by the players in e-Commerce are not reliable in nature and some of the marketing strategies such as the email marketing, social media marketing are not relied upon by several customer and companies enjoy low reputation & brand loyalty.

Organisation’s competitive advantage compared to similar businesses

Scoopon is having several competitive advantages as compared to the other market players present in this segment due to which Scoopon has attained exponential growth in its revenues as well as total size of the firm. The best competitive advantage which Scoopon has in comparison to its other competitors in the market is the customer loyalty and huge user base which has touched now more than 10 million users visiting the offers on daily basis.

Another important competitive advantage created by the company is into the mails and message written by the company as these message hit the inbox people are eagerly waiting them to read as these are so interesting. Scoopon has employed several writers so as to make these communications so interesting for the customers. Hence the main focus of the company is creating a pleasant experience for the customer through message and mails especially through comedy mails rather than focusing on the technology to attract the customers. This has helped the company to enhance the total hits for the company and conversion of the hits into real sale due to which Scoopon is among the online retailer with highest margins. [Customer management study help is available at this page– LINK]

Suggesting ways they may be able to make better use of the digital economy and benefit to company or the customer

Some of the key ways which can be suggested for the e-Commerce business model as set up by the Scoopon so as to make the best of digital economy and benefit to the company can be given as below:

  • Put feet into customer shoe: Most of the websites in retail lifestyle domain are doing the similar business with no variation which has made difficult for the customers to choose among the several available options. Also organisation in current age need to think from the customer perspective that which products they need to buy and the way they want to make the buying decision. Hence organisation should make more focus on the changing consumer behavior rather than just relying on the technology to enhance the footfall to their website which merely would result into unsuccessful business model.
  • Creating a trusted image: In present age we get so many mails and message regarding promotions offers from various marketers which we does not want to receive. Such trend in the industry has lead to bad reputation for the online lifestyle retailer hence in order to create a unique brand image company need to have a trusted image where in people are believing on the message from the marketer.
  • Greater need of customer interaction: Two ways communication process can help in order to enhance the footfall of customer and ultimate sale as well. Hence it is the prime duty for the marketers to make the message more interesting so that customers are eager to get the message and can interact with the marketers.
  • Making simple: e-Commerce businesses need to make their business model and website very simple in looks and their approach as well. Hence by making the website simple would help customer to process their request easily and in less time.

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