The Cliptomania Web Store : An Overview Essay example

The Cliptomania Web Store : An Overview Essay example

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Cliptomania: An Overview
“The Cliptomania Web Store” is a case study which analyses the strategic challenges faced by the founders of www.Cliptomania.com. The Santos, Jim and Candy, developed the idea of selling clip on earrings when they discovered an underserved niche in the market place and subsequently established Cliptomania, LLC. When the Santo’s family started the company in 1999 they had little competition and managed to create a stable business with increased growth, despite the investment of little start up cost and a somewhat limited knowledge of the dot.com industry. Although recent profits have decreased significantly, Cliptomania has remained profitable and competitive in the market place.
Strategic Issues Faced
The Santo’s faced numerous hurdles from the inception of Cliptomania, the first of which was setting up their web store. Early on they realized that the web was the perfect medium to promote their business, but since neither had any web experience they looked to Paymentech via Yahoo to host their store. Yahoo had the best security at the time and also a ‘back store’ to help support accounting. Eventually they realized that Yahoo had become every expensive and they eventfully switched to Nova, which provided better rates and was a local vendor. This is an example of how the Santo’s were able to maximize their profits by continually looking at ways to keep their expenditures down.
Securing inventory also presented its problems. It was a learning experience, but they eventually found wholesalers who would create them their own line of exclusive earrings. In addition, since the fashion market is a static industry they had to be cognizant of the ever changing trends. Candy’s and her daughter, Christy, w...


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...ave done this in the past and these solid practices will help them remain afloat in the future. Two of the biggest hurdles a web based company faces is strong competition and similar companies with competitive pricing. It appears that the Santo’s were aware of this potential killer and were looking for ways to minimize their costs or be one step ahead of the competitors. Using such business tools as SWOT analysis will be beneficial in the long run. Since they are a web based company, their main focus will need to remain on the internet and how they can continue to be sure their customers are just a click away. The Santo family has grown with their business and they have developed strategies as their business and the internet world around them changed. These are two very positive signs that if they continue these practices, their company will continue to thrive.

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