Overstock.com is an online retailer that offers products that is either produced for the company or purchased by them for other wholesalers or vendors as they serve as the intermediary. Their products are for sale to customers at wholesale or less wholesale prices. The goods for sale include bed-and-bath supplies, home appliances, kitchen utensils, watches, jewelry, gadgets, sporting merchandise, clothes and accessories.
The source of Overstock.com’s power on its expansion plans come from their skilled executive team and large funds set aside to take advantage of unanticipated opportunities. Among the online retailers at present, the prices of their ...view middle of the document...
Overstock.com considered changing its name into O.co but the plan did not succeed (Snyder, 2011). However, the company president does not completely abandon such plan for the future. Another business strategy of Overstock.com is its choice of business partners. The company is known to make partnerships with other businesses and one of them is Enterprise Rent-a-Car. With their affiliation with this company, Overstock.com takes on the automobile business. Also, the company even offers car rental discount on military veterans through Club O Membership (Enterprise Rental Cars, 2010). These activities of Overstock.com relates to business strategies.
Functional areas in business include many aspects such as human resources, marketing, research and development. This paper will focus on its human resource strategy. Overstock.com continues to educate over 1000 employees to deliver quality service. They are also provided the tools, information, and choice to do what it takes to get their works as fast as possible. Under the management of a retired Army colonel, employees go through a thorough education schedule wherein they take a broad set of courses such as business English, ethics, accounting (Retail Merchandiser Magazine, 2011).
Corporate strategy pertains to plans with regards to improving the overall performance or operations of the company. For the Overstock.com, product pricing is a vital factor that influences the overall performance of the company. The pricing strategy of Overstock.com is that they charge same price to all of its customers. The company purchases from retailers products with tremendously low “closeout” prices and ultimately sells these products on the internet (Franzen, 2013). This is the strategy of Overstock.com which attracts customers and eventually made them known as online retailer of cheap items.
One implementation tactic where Overstock.com succeeds is in connection to its organizational culture. The company placed rank number 1 for employee satisfaction in a survey by Glassdoor.com specially made by Forbes. The company attained high marks for its enjoyable, stress-free work culture. CEO Patrick M. Byrne achieved 92% satisfaction votes from its employees (PRNewswire, 2010). This ranking implies recognition for the company’s organizational culture. Overstock.com’s mission and vision also include...