AuctionShipper, a new packaging and shipping company, caters to online auctions like eBay. They also offer regular shipping services for walk-in customers. AuctionShipper is a service provider that provides affordable, environmentally friendly, and convenient services.
AuctionShipper is focusing on three keys that will help it achieve sustainable success. It will provide a service that is needed by the market. This it will do by providing affordable packaging and shipping services. The second will ensure that its services are as simple as possible. It will not be a long-term customer if it isn’t the most convenient. The last thing is strict financial control.
AuctionShipper targets three segments of customers: new eBay users, advanced eBay users, and intermediate eBay users. Each group will have their own compelling reasons for using AuctionShipper. Because these two distinct groups exist, they will be targeted in different ways. New eBay users have 11,216 possible users and a 15% annual growth rate. Advanced users, on the other hand, have 8,097 customers and a 9.9% annual growth rate. All other potential customers will make up the last group with a growth rate between 7% and 23,221 customers.
AuctionShipper has to contend with two types of competition. Mom and pop shops offering shipping and packing as an added service to their core offerings are the first type of competition. These shops offer shipping services as an extra service. Franchises, which are primarily focused on shipping and packaging services, are the second source of competition. There are many competitors in this market and they generally offer high-priced shipping options. These service providers are appealing to those who value convenience and are willing to pay more.
AuctionShipper’s leader is Jack Paacker. He is a veteran entrepreneur who founded his first business in college. Jack will succeed in using his MBA skills and his business experience to run his own business. AuctionShipper’s success will depend on Jack’s experience and education. AuctionShipper’s second year of revenue will bring in $185,000, and then rise to $285,000 year three.
1.1 Objectives
- Become the premier auction shipping service.
- Reach profitability in the first two year.
- In three years, achieve market penetration of 15%
1.2 Mission
AuctionShipper strives to be the top auction shipping company. This will happen by offering competitive prices, speedy and environmentally responsible service, and maintaining 100% client satisfaction.
1.3 Keys to Success
- Provide a service in a competitive market.
- Be as convenient as possible.
- Employ strict financial controls.