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Competition
Analysis of competing organizations
reveals that it will be possible to be the first high-quality replacement
parts site. Of the organizations that sell parts, most typically are limited
to a single niche. Overwhelmingly, those organizations sell auto parts.
Investigation has revealed that a significant fraction of these sites
are typically homespun, unfunded enterprises. Additionally, none of these
sites have established themselves as recognized name in their respective
categories. ACME PARTS.com’s model of combining free, useful content,
a comprehensive searchable database, a vast range of product categories
and a friendly, intuitive user interface will make us a stand out in the
market we have selected. We have an excellent opportunity to establish
ACME PARTS.com as a leader in replacement parts and accessories.
Our investigation includes
e-tailers in categories other than appliance parts. While we will open
with appliance parts, we intend to rapidly expand our offerings. Therefore
we consider potential competitors in areas we anticipate to expand.
Review of domain names in the
genre reveals one organization that rolled out a site in June of 1999,
PARTS.COM. While they have addressed the niche of replacement parts, their
approach is the auction and classified ad metaphor. A recent press release
indicates that they intend, in early 2000, to roll out a product sales
site built upon a database of auto parts. This site currently lacks any
database, if they do deploy a database related sales model, then at that
point there business model will be similar to ours. However, they have
selected auto parts for their roll out. This product line is a competitive
category and made even more difficult because it competes unfavorably
with brick and mortar establishments. The language and claims made in
their press release calls into question the professionalism and capability
of the organization to achieve their goals. For example they support the
claim "Parts.com is positioned to be the front runner in the e-commerce
parts industry" by virtue of email they have received.
EPARTS.COM is owned by Mentor
Graphics for purposes unrelated to what the name might suggest. Additionally,
the domain is not in use by that organization and should be an early target
for acquisition.
PARTSCOUNTER.COM is in use
in a single product niche and not done particularly well.
SERVICE911.COM is a thorough
site relating to all aspects of maintaining and operating a PC. They have
a knowledge base, video how-to, they handle emailed technical questions
and a variety of other features. They do sell some advertising as well
as selling technical service calls to local service providers. Their links
to sales though do not include a database of items from which to choose,
instead they link off-site to one of several other companies. Their knowledge
database allows you to specify a search but then does not list the details
of possible matches, forcing a visitor to blindly check each one. Furthermore,
the knowledge base is actually only forwards a ZDNET page to the visitor.
The problem with this forwarding is that the look and feel of the site
and interface consistency is completely lost. The only worthwhile feature
of this site is their video demonstrations, a feature that we have also
planned to utilize.
EHOW.COM is a content oriented
site with links to various subscribed vendors. While this at first blush
appears to tread on ACME PARTS territory, further analysis finds that
the coverage of "How To" articles ranges broadly and covers very limited
subjects. Furthermore, the links to independent vendors results in no
consistency between sales models and user interface. EHOW.COM generates
income by selling subscription links to independent vendors. It is an
interesting model with some similarity to ACME PARTS, but does not represent
a threat to our goals or uniqueness.
Other domain names often revealed
no web site or extremely amateurish sites. None of the domains seemed
to pose any threat to our field.
Investigation of appliance
part sites revealed no site that was able to offer parts for sale on-line.
Typically, the sites catered to appliance repair workers to order parts
that they already knew the part number and price. In most cases these
sites were poorly executed, lacked features and in all cases were unable
to electronically transact a sale.
One organization, REPAIRNET.COM,
offers to include parts and repair specialists in a national database
of local businesses. Additionally, they sell subscription to appliance
repair and troubleshooting content for inclusion in local websites. While
the concept is good, the execution is poor. However, consideration may
be given to purchasing the content and upgrading it to meet our standards.
Because of the number of sites
that exclusively retail auto parts, this category should be. Instead,
auto parts should be added when ACME PARTS has developed a leadership
position in the marketplace. Ideally, ACME PARTS should take up this category
only when it is possible to come in and dominate on-line sales. Finally,
because of the potential for a national parts distributor to take up on-line
sales, it would be best to make our investment only after we determine
that we can dominate.
Computer parts are widely available
on-line. However, most organizations focus primarily on whole systems
and peripherals. Parts such as network cards; controllers, power supplies
etc. are under served or ignored by the largest sites such as GIGABUYS.COM
and other E-tailers. While we do face competition, because of the demand
of the on-line community for computer parts and because of the principles'
familiarity with them, it seems a natural category for the early expansion.
Another area of early expansion
is toner and ink for copiers and printers. While major suppliers such
as Staples, Office Depot and Office Max each offer these products, there
is still plenty of opportunity. There is minimal overhead to developing
this product category and thus little risk despite the competition. Furthermore,
those competitors do not offer a full range selection, but instead offer
the most common varieties of products. Opportunities exist for us to provide
features to customers that our competitors do not offer.
We have asked several beta
testers to go out on the Internet and find various things such as washing
machine motors, crock pot lids, pilot light thermal probes and TV remote
controls. They reported that they couldn’t locate these things. ACME PARTS.com
will change that.
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