INTRODUCTION

In the emerging global economy, e-commerce and e-business have

increasingly become a necessary component of business strategy and a strong
catalyst for economic development. The integration of these electronic-based
businesses has revolutionized relationships within their clients and their
consumers. With the wider scope of web based emergence, it has encouraged
greater

customer

participation

and

enabled

mass

customization.

With

development in the internet, distinctions between traditional markets and the

global electronic market place - such as business capital size among others are
gradually narrowed down. The name of the game is strategic positioning, the
ability of a company to determine emerging opportunities and utilize the
necessary human capital skills to make the most of these opportunities
through an e-business

strategy that is simple, workable, and practicable

within the context of global milieu and new economic environment.

With the implications of electronic commerce, social media has become
one of its venturing channels for success. As such, it has been a medium in
promoting

and

advertising

products

and

services.

And

that

is

how

HomeRun.com takes their opportunities.

HOMERUN.COM: BREAKING INTO A SATURATED MARKET

Founded by Jared Kopf and Matt Humprey on 2009, HomeRun, is an

internet business that had opened its merchant customers in fall 2009. It was
founded as group buying business which offers products and services at
significantly induced prices on the condition that a minimum number of
buyers would make the purchase. HomeRun emails its customers with daily
coupons that they can use to purchase popular goods and services from local
merchants and businesses. Founded in San Francisco and expanding to serve
more than 30 U.S. cities include Portland, New York, Detroit, Washington D.C.,
Baltimore, Phoenix and Chicago. HomeRun is designed around an innovative
social media concept that encourages users to share their deals with others
and gather more subscribers for HomeRun.com.
HomeRun offers substantial and sizable discounts equaling more than
half of the product or services original price. To avail the offer on a discounted
price, the users must avail of the product or service through HomeRun. The
company also operates with featured opportunities for subscribers and users of
the website to find more ways to save money while enjoying their pre-recession
lifestyle.

HOMERUN.COM: BREAKING INTO A SATURATED MARKET

STATEMENT OF THE PROBLEM

How can Homerun management keep pace in the continuous changing
needs of their merchants and consumers?

OBJECTIVE OF THE PROBLEM

To aid Homerun in breaking into a saturated market - through
enhancement of its marketing strategy, customer retention and operations
management to increase its sales volume and promote new products of
merchants.

ALTERNATIVE COURSES OF ACTION

1. Enhancing Marketing Strategy through:
a. Socialization. Homerun's strategy should effect typically on group buying;
as people rely more on the goods and services recommended by their
friends and family.

HOMERUN.COM: BREAKING INTO A SATURATED MARKET

b. Technology. There should be a proprietary technology differing from the

daily email standard to stand out from its competitors in the highly
saturated market.

Homerun should also consider expanding its

merchant pages allowing merchants to run their own deals and

thereby creating a more ideal market for consumers. This could be
achieved by encouraging more and more merchants to exhibit their
product offers through membership awards. Unless merchants feel the
need to settle and do business on one site, they will continually introduce
their products in different sites. Homerun should expand its merchant
pages that will necessitate settlement of merchants. This should allow
merchants to make their own deals as if Homerun is the online home of
their business.
c. Global Market Diversification. Stability of their market in the national
must be obtained first before proceeding to the next level. Though, the
settling to national engagement does not mean closing the opportunities
globally. Global expansion is a great endeavor which requires optimum
combination of the organizations resources such as capital, human
labor, skills, time, effort and even sacrifices.

2. Enhancing Customer Retention through:

HOMERUN.COM: BREAKING INTO A SATURATED MARKET

a. Service. Coupon and gift card distribution should be convenient and

reliable for consumers. Homerun should address the primary needs of its
consumers, catering and providing convenience to satisfy their demand.
b. Inventory and Pricing. The pricing of the company's inventory is a key
differentiator. This could aid the company in retaining its customers. It is
primarily best to establish a market that caters the

need of every

consumer and even a market that provides personalized offers

meaning a market which adjusts to the customers need, preference and
customers counter offer as to the price.

3. Enhancing Operations Management through:

a. Proper decentralized communication with their employees from top to
lower management. Communication is the key factor in the success of
the businesses as well as a factors or elements towards innovation and
quality. Decentralization means distribution or delegation of power and
information from the central authority to the employees.

b. Proper cooperation and adaptation must be done in the company.

ANALYSIS
HOMERUN.COM: BREAKING INTO A SATURATED MARKET

1. Marketing Strategy
a. Socialization
Advantage: Social interaction on multiple platforms such as Facebook,
twitter and other social media sites, the company has become more
popular. Also, other people tend to trust those products recommended by

friends, relatives and family or highly rated by other consumers.

Disadvantage: It isn't enough to capture the market at this level of
market saturation because consumers are intelligent enough to know if
reviews and recommendations are true or not especially in social
networking sites.

b. Technology
Advantage: developing and employing technologies enable the company to
personalize their products, to cope up with the changing world, and to

facilitate globalization.
Disadvantage: technologies are costly or expensive to the part of the
company.

The company is required to employ experts to operate and

maintain the acquired equipment (technology-based).

c. Global Market Diversification

Advantage: Global diversification creates a wider market for Homerun
and barrier to entry is minimal. This creates more opportunities for

HOMERUN.COM: BREAKING INTO A SATURATED MARKET

Homerun in terms of higher productivity and greater range of network.

Diversification will pave the way for job security and economic growth.
Disadvantage: Global diversification requires large amount of capital,
time, effort and entrepreneurial skills.

2. Customer Retention
a. Service
Advantage: Running a business with a good service (customer) helps the
company build customer loyalty. Customers also are frequent patrons to
businesses that place a high value on training their staffs to emphasize

customer service.
Disadvantage: A Customer-focused business operate solely on customers
needs and wants which affects the creativity of the company and they
may resist coming up with ideas to improve products or create new
products, so they begin to lack innovation. In addition, customers' needs
are ever-changing, which means the company needs to have the
resources, such as financing, staffing and time, to constantly keep up
with customer demands.

b. Inventory and Pricing

HOMERUN.COM: BREAKING INTO A SATURATED MARKET

Advantage: Agreements to merchants in terms of product display to deal

sites and a good pricing strategy differentiates the company to other
competitors that allows them to attract more customers.
Disadvantage: Not all merchants acquiesce to single dependent deal site
viewing the circumstance that reliance to more group buying site will
help them uplift their offers and achieve greater sales. Also, pricing
strategy that trimmed the price at very low level might cause deal sites
like HomeRun operate at lower commission or even at breakeven.
3.

Operations Management
a. Decentralized Communication.
Advantage: By implementing decentralize communication inside the
HomeRun, skilled employees can share their thoughts and ideas. Giving
them opportunities for those who have skills and experience. It may
broaden the new idea, way of thinking and imaginary ability of the

company.
Disadvantage: If this happens, ideas overload is the result. Lack of focus
to the idea that might help the company in achieving their goals and
objectives.

b. Coordination and Adaptation

HOMERUN.COM: BREAKING INTO A SATURATED MARKET

Advantage: With this, Homerun.com employees can work and innovate

quickly enough for them to have a progress and have a competitive

advantage.
Disadvantage: due to change of plans, adaptation may take time and the
possibility of affecting the operations may be high in effect to the
adjustments implemented.

FINDINGS
The purpose of the analysis is to assess the operations management,
marketing strategy and customer retention of HomeRun. In accomplishing that
goal, it is necessary to reach some prerequisites and to understand the factors
that affect the management of the entity as whole and the plans and actions
that should be taken. In analyzing the possible courses of action available, the
group findings are as follows:

Enhancing Marketing Strategy

HOMERUN.COM: BREAKING INTO A SATURATED MARKET

The marketing strategy of HomeRun will be enhanced through

socialization,

technological

advancement

and

global

market

diversification.

Enhancing Customer Retention

The process of retaining customer trust will be improved through
good customer service and a well-priced offer. HomeRun must attain
customer satisfaction by satisfying the primary needs and demands of its
consumers. A product or service with a high quality at an affordable
price.

Enhancing Operation Management

Decentralized communication to employees will enhance the
operation of Homerun.

It will enable the staffs from lower to top

management to share their thoughts and ideas regarding the most

effective and efficient ways of achieving their objectives.

In conclusion, Kopf and Humprey, HomeRun business partner, must

consider the 3 factors that may affect its business operation in order for them
to point out the possible future effects of their decisions. These factors will help
them properly know what will be the strengths and weaknesses of their
venture. Also, an intelligent and proper way of application of these factors will

HOMERUN.COM: BREAKING INTO A SATURATED MARKET

help them position and maintain their business not only in the short run but
even in the long run.

RECOMMENDATIONS
Among the possible courses of actions available which were being formulated
by the group, Homerun, as a group buying business must consider the third
factor which is enhancing operation management. Enhancing operation
management focuses on the internal factors that affect the companys business
operation.

For example, decentralization in terms of communication and

proper management of their labor force will address the problems arising from
miscommunication and wok inefficiency. Furthermore, cooperation and
adaption made by the top management will help them effective in achieving
their short term objectives as well as their long their goals. Also, the issues
that affect marketing strategies and customer retention will rely on the internal
factors especially in the formulation process of the business.

HOMERUN.COM: BREAKING INTO A SATURATED MARKET

HOMERUN.COM:
BREAKING INTO A
SATURATED MARKET
( A CASE ANALYSIS)
Jagg A. Dela Cruz
Mira Carmela Fadullon
Clyde M. Cabotaje
Jemelle T. Cariaga
Junjie B. Palma

Prof. Dante Narciso

(Instructor)

HOMERUN.COM: BREAKING INTO A SATURATED MARKET