[Institution Title]
Introduction
Businesses are usually developed to seize an opportunity that is presented into the market. Usually, this opportunity is brought in by another company that opens a new line of business. In the case of Auction Wagon, Inc., it was born out of e-Bay’s decision to expand and tie-up with other organizations through drop-off stores. This paper will analyze the business process of Auction Wagon, as well as the trend that affects the business in terms of productivity and sustainability.
Analysis of Auction Wagon, Inc.’s Business Model
Auction Wagon, Inc. decided to take advantage of the increased market opportunity of drop-off stores. They were very right at selecting West Hollywood, California to be the place to open their store. Not only are they the pioneer drop-off store in the area, it also houses to a very good market as far as size and financial potentials are concerned. Auction Wagon, Inc., took on the responsibility of handling the entire sales process of E-Bay, which can be viewed both positively and adversely impacting their operation. First, by covering the entire sales process this involved a tedious process which requires time and resources to cover all the steps to complete the process. Second, this would require mastery of the necessary skills for every stage within the sales process. These challenges paved the way for problems to be created including undercapitalization. The tedious process and the need for expertise in every step along the process created the problem. Despite the increase volume of business coming in, it is not enough to cover the expenses of the company.
Furthermore, the lack of extensive planning has created more problems for the company. While they perceived their location to be highly strategic for business, they failed to consider the existing commercial policies within the area. Only when their attentions were called by the Los Angeles Police Department have they realized that the type of store they carry is not allowed within the area and they are being force to leave the vicinity and close their business. The limitations of the software that they carry also possesses the same impact. Overall, the problems originated with the founders’ lack of proper planning and their eagerness to venture into business without conducting extensive business research.
Based on an overall analysis and evaluation of the business trend and the business process adapted by Auction Wagon, Inc., it is the recommendation of this paper that the leaders of the organization conduct an extensive business research that would consider all aspect of business operation. While there is a good opportunity to seize the market, the capacity and potential of the individuals within the organization may not be sufficient to adequately address all the necessary requirements for the business venture.
References
McGuire, S., Block, M., Hernandez, M., & King, R. (2006). Auction Wagon. Case Research Journal, 1-20.
