case study 1

Case study

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For the Week 3 Case Study, you will review the Shopify case at the end of Chapter 6 (page 180-181).

Upon thorough review of the case, you will then answer the (4) questions for discussion regarding the

case. It is not sufficient to state your opinions alone; you must be able to back up your responses by

applying marketing concepts from the text with the case data that supports your findings.

Through writing this case study you will be required to demonstrate a knowledge of how to integrate

marketing concepts with the case data, how to conduct research, and how to properly cite sources using

APA formatting guidelines. You will be responsible for using a minimum of 2 scholarly/peer-reviewed

sources. Textbooks are not considered scholarly/peer-reviewed sources; however, they may still be

included as a supplemental reference. You will also be responsible for writing the case study in an essay

format (introduction paragraph, body paragraphs, and conclusion paragraph).

DO NOT write this as a Q&A. It is an essay.

Review the announcement “How to get an A on the Case Study”

Review key terms from Chapter 6. Use them in your paper.

Company Case: Shopify: An E-commerce Giant That Doesn’t Sell to End Users

What do Budweiser, Tesla, The New York Times, Bombas Socks, and Kylie

Cosmetics have in common? Each company sells direct-to-consumer (DTC)

merchandise primarily online. But more, each has an online store created,

managed, and powered by Shopify—the biggest e-commerce company that most

people have never heard of. In the age of DTC companies, Shopify is behind-the-

scenes business that takes care of everything for anyone wanting to sell

something online—a genuine end-to-end commerce platform for everyone from

the young entrepreneur who has never started a company to large, well-known

corporations needing an online store.

The concept is simple. For a monthly fee, Shopify helps individuals or corporations

sell their merchandise online. It supplies everything merchants need to go online,

including customizable store templates, inventory management systems,

analytics, payment processing, and shipping. Shopify also provides consultative

services and a network of partners to handle manufacturing, promotion, and

order fulfillment. Shopify’s platform not only sells merchandise directly from the

merchant’s online store or mobile app, it plugs into a growing number of broader

platforms, including online marketplaces like Amazon, social media channels like

Instagram Stories, and even brick-and-mortar locations. The system is completely

cloud-based, which means zero investment in hardware and software. It also

means that business owners can manage things from anywhere on any device

with an internet connection. In short, Shopify’s mission is to make e-commerce

easier and better for everyone.

Although that mission seems a bit lofty, Shopify is well on its way. In 2015, the

nearly 10-year-old company went public at a value of $1.3 billion. The preceding

year, Shopify’s 140,000 stores had sold more than $3.7 billion worth of

merchandise. And Shopify has been lauded by experts and organizations the

world over for its growth and impact, including being named as one of the world’s

most innovative companies by Fast Company this year. How has Shopify come so

far so fast yet remain relatively unknown to the average consumer?

Questions

6-16. Compare and contrast the nature of the business market structure and

demand relative to consumer market structure and demand for Shopify’s

services.

6-17. Discuss how a potential client for Shopify might go through the business

buyer decision.

6-18. How does the concept of the buying center apply to Shopify?

6-19. How much of a threat does competition pose in Shopify’s future?

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