Essay on StuffDOT Case Study

StuffDOT Company operates online and is popular for its online shopper's rewards system; the company rewards individuals for each time they purchase lifestyle products online and share on their platform. The Company StuffDOT has its core customers are students and stay at home moms as well as other individuals with increased online spending and social media activities. The Company has an estimated annual income value of 14.3M with an average of 41 employees. The major competition encountered by StuffDOT originates from organizations such as Addshoppers and Shopalize incorporation. At StuffdDOT, consumers comment and click on the items they like which is a form of creating user-generated content, it is a form of online media publicity created by consumers. The extent of media contact between two communication partners

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StuffDOT has increased the ease of communication with its core consumers through the application of technology in app development. The company developed a user-friendly app that enables both consumers using IOS and Android operating systems to access the platform. To develop comprehension and statistics for the popularity of their content, the marketing managers at StuffDOT monitor closely the rates of interaction for this content, the frequency of purchases, the number of shares and clicks based on individual products. Major social media platforms used for marketing and communication with consumers include twitter, Facebook, and Instagram. Based on the Xerox case study, the organization uses traditional methods of communication due to its attempt to adapt to the relationship orientation techniques of operation. StuffDOT on the other hand operates through product orientation hence the increased use of Social media for communication with its core consumers.

The pricing of an online enterprise is conducted based on several aspects which include the identification of the business’ revenue model, annual reports analysis, and an approximation of the overall business expenses. The revenue model identification involves the rate of subscriptions and the number of subscribers to the online platform, lead generation methods, and advertising strategies. The model indicates the viability of a business. The annual financial reports may be analyzed with the use of balance sheets for individual financial tracking.

The StuffDOT is valued at an annual financial income of USD 14.3 Million; this value should then be multiplied by a factor of three to give an exact value approximation for the company, 42.9 million dollars, as it is a service providing business. An estimation for the average expenses incurred by the StoffDOT company is necessary in cases of its sale, these expenses are calculated on annual basis. The company’s value is discounted at the value of its expenses, these may include the administration and hosting fees. The Company should purchase StuffDOT; StuffDOT faces minimum competition and with its recommended value of USD 42.9 million, the complete utilization of digital convergence could enable the company to achieve better returns.

Conclusion

This review identifies the application of digital aspects of communication with specificity to digital convergence as portrayed by the company StuffDOT. The company’s major consumers are students and other increased internet consumers as well as shoppers. According to the Xerox Company from the case study, traditional techniques of consumer communication are aimed at increasing their consumer loyalty to their brand. Digital communication is successful in enabling service providers to focus on their product development and monitor closely the product interaction rates.

References

(2020). Retrieved 4 October 2020, from https://www.owler.com/company/stuffdot.

(2020). Retrieved 4 October 2020, from https://quizlet.com/391925264/marketing-video-case-stuffdotinc-flash-cards/.

(2020). Retrieved 4 October 2020, from https://exchangemarketplace.com/categories