Monday, October 8, 2012

Analysis from the point of view of financial statements in eMarketing

The first session of eMarketing was quite fresh sense for me because my background is audit and transaction services. I had never taken lecture about matketing. But fortunately I was involved in some e-Business startup companies such as it provide affiliate advertising. And I was wondering what many of e-Business companies can reap greater profit from thier business for quite a while.

For instance, TOYOTA, representative of Japan's manufacturer, thier ratio of operating income to net revenues is only 6.4%(3/2013_1st quarter) , while Rakuten, the operating company of leading online shopping moll, thier ratio of operating income to net revenues is 19.8%(12/2012_2st quater). The difference of ratio have more than tripled. Iwant to know what is source of high-margin value-added companies such as Rakuten.

In my hypothesis, marketing approaches in eBusiness have some significant competitive advantages that other industries do not have that at this moment. I will show some example in my head.

1) The way of advertisement such as affiliate advertising. This is not only easy to measure advertising effectiveness but also cost is relatively cheaper than advertising on TV.

2) Cost of information technology operation have a tendency to be cheaper than labor cost of operation.

Anyway, through these lectures I would like to figure out whether it is depend on marketing approaches or not.

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