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X Fire Paintball and Airsoft is Amazon a Friend or Foe A Case Solution
| Solution Id | Length | Case Author | Case Publisher |
|---|---|---|---|
| 2375 | 745 Words (5 Pages) | Feng Zhu, Angela Acocella | Harvard Business School : 617046 |
A Word File
The (A) case describe X Fire Paintball and Airsoft history as a brick and mortar retailer started in 1999 by Steve Herbert Sr. and his sons began selling products on Amazon.com’s third-party Marketplace after three years of offline business, X Fire enjoyed a first place on Amazon as the only seller of its products so, rapid growth in online sales. After a whereas, the X Fire saw online deals decrease, after an examination found that items it was once the sole dealer of were presently sold by Amazon specifically from X Fire providers, killing the X Fire. Amazon was too disregarding the least promoted cost set by producers. How ought to X Fire protect itself? Presently, Amazon agents are drawing closer to the X Fire to empower them to offer in Amazon's littler but developing Canadian showcase. How ought to X Fire respond to this opportunity?
Following questions are answered in this case study solution
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Introduction of the case & Dilemma
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Issues highlighted in the case
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Options and alternatives
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Challenges with the abovementioned options
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Challenges with Expansion to Canada
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Implementation
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Defense Mechanism
Case Analysis for X Fire Paintball and Airsoft is Amazon a Friend or Foe A
2. Issues highlighted in the case
There are certain issues given in the case:
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X Fire online sales are dropping.
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Amazon had begun to source products from X Fire’s supplier and sell them directly.
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Amazon had used a data base of X Fire to test the paintball and airsoft market before entering.
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Amazon discount manufacturer- determined minimum advertised price (MAP)
3. Options and alternatives
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X Fire fights back with competition created by Amazon.
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Consider the other popular online platforms.
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X Fire should launch its own website or e-commerce website to directly deal with manufacturers and customers.
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Put more focus on offline sales to boost it.
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To sell its product in Amazon’s Canadian website.
4. Challenges with the abovementioned options
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Additional staff and resources will be required.
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Drive traffic and security issues
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Couldn’t offer to price as it is selling through its own channel
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Many new costs would be added such as Advertising, warehousing, logistics, and maintenance of site costs would be increased.
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X Fire would require to provide extra or add on services such as warranties and freebies.
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It would require lot of efforts time and patience to build brand online
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