Gumtree: Website Analysis - Case Study Example

Gumtree: Website Analysis i) Company Missing business links for new entrants into the of London formed the basis of the establishment of Gumtree in March 2000 to connect business parties on the online platform. Despite the origin of the company being in the UK, a decade later has seen growth to over six countries and coverage in about 60 cities. Informed by the needs arising when people move inside and outside the city, the founders of Gumtree isolated and strategically targeted business opportunities that would offer the appropriate connection between the movers and service providers with specific solutions. For residents willing to move out of the City of London, the business idea found an opportunity to dispose off certain property such as old household goods and appliances without directly dealing in the business. Second hand property dealers with no idea of the availability of such an opportunity eventually formed the target for the company as arising from the movements. On the other hand, new entrants into the City identified as potential customers for various new and remodelled properties as they settle in the City. From residential houses and household appliances to motor vehicles and jobs, the website adopted a business design for purposes of coordinating the trade. ii) Business Objectives As highlighted above, coordination of business through the online platform forms the core business objective for the Gumtree website. Gumtree.com offers a channel for buyers of properties such as motor vehicles, jobs, houses, electronics as well as various services appropriate for the identified market. The objectives of the online platform provided by the website, therefore, entail attempting to bring together of all buyers and all sellers for the goods and services listed and pick new cues from customer demands to form new markets (Ritson 2011, p23). Using the market forces of demand and supply to coordinate the activities of the buyer and the seller, the website generates a virtual market for nearly every need for the identified market. In view of the specific business objectives, Gumtree.com targeted the classifieds section within the UK in terms of the local community. Initially, the disposal and purchase of housing properties for people in London then across UK cities identified the potential for extra business avenues. Stretching the coverage beyond the European market for similar services as well as the introduction of more businesses made Gumtree the giant virtual market that it is today. In line with forming the core link between local classifieds parties, the expansion concept stretched the scope and mandate of the business to unparalleled growth beyond European targets. Subsequent acquisition by internationally established and more seasoned online market dealers in the business line that the company headed into confirmed the business capacity on the global platform. EBay compatibility with Gumtree under its business strategy and business concept popularly known as Kijiji category of online players demonstrates the receptivity that it has for the classifieds niche. Website business for classifieds at the highly personalized and nearly customized customer needs offers virtual yet practical platform on which trade continues to completion. iii) Business Model Gumtree and its parent company as well as other Kijiji establishments operating under eBay have an online presence that adopts the brokerage business model (Rappa, 2012). Under ordinary brokerage business models, buyers and sellers employ a virtual market platform offered by the service provider owing the website. In view of this business model, the three parties are engaged in business transaction where the website owner targets the activity of buying and selling to charge some facilitation fee arising from the usage of the connection service obtained at the website. Usually, the business model brings together certain classes of buyers in search of a wide category of products on offer (Eisenberg 2005, p43). At the Gumtree website, it is possible also for the business model to host the display of different goods and services on offer by several dealers. As mentioned above, the wide range of products for second hand and brand-new categories as well as services from the different dealers, open a virtual market from which trade can proceed. In line with the different models that manifest in brokerage category, Gumtree main category of business entails business-to-consumer (B2C) arrangement where sellers and buyers meet. In view of the facilitation, as derived from arrangement in business supported by websites such as Gumtree, the basic market connection where suppliers and buyers meet manifests. As an illustration, a supplier of electronic devices such as DVD player enrols with the service offered at Gumtree to get the buyer who would otherwise need to buy the same from inconvenient supply chains. Simple market deals where suppliers meet their target buyers through display and link for purchases and delivery functions on an ordinary B2C platform offered at Gumtree. With respect to the diversity in supply lines and purchases deals facilitated by eBay and Kijiji model under which Gumtree operates, a perfect connection opportunity avails itself to buyers and customers. Such a B2C connection model enables the website make passive contribution to business yet makes earnings for charges to the buyer and the seller for the service offered. The Gumtree.com website design adopts the Web 1.0, which is the standardised and simplified shopping format on which ecommerce activities continue (Getting 2007, para.4). According to the author, the platform of the Web 1.0 model in shopping applications suits the purpose of supporting the B2C objective, which is mainly trade. The author differentiates the format of the Web 1.0 from Web 2.0 and Web 3.0, which have advanced features in terms of additions, and alterations that end users can make to the appearance and content of the website. Due to the simplified looks that the Gumtree website presents to the end user with a simple functionality supporting shopping, it is possible to qualify it to a Web 1.0 design. Apparently, it is not possible to make enhancements in form of development of the Gumtree website as Web 1.0 level of advancement does not support such functionality as Web 2.0 as well as Web 3.0 enables programmers. There are interesting cues that emerge from the Gumtree website design with respect to the branding and advertising functionalities. By adopting attractive and catchy words of advertisement on the face of the front page, the website demonstrates how it embraces marketing from the initial visit. As an illustration, captions such as savings percentage expected from adoption of deals available on the website up to 75 percent sound like a deliberate marketing strategy. Brand name for the company perhaps emerges from the web analytics information that ranks the company as among the most popular website destinations at position 30 in the UK as well as 868 at the global platform. Obtaining such a strong ranking of among the top 1000 most popular websites on the global market and within the top 50 corporations in the UK paints a picture of a strong brand (Alexa 2012). Assurances of reductions on deals that customers expect from effective visitation contribute to the Gumtree’s strategy to retain customers to the platform. Provision of customer friendly shopping tips at the front page of the website demonstrates a concerted effort to create an attractive customer experience and response from shopping or visitation outcomes. However, this could perhaps obtain momentous boost and backing by existence of effective customer support functionality with a constant and conspicuous online presence of customer care attendants. Automatic chat pop-up prompting clients to direct queries to the customer care would enhance customer care experience at the website than when a link exists offering the same option. The Gumtree website appears to offer business services that promote its core business objectives and values in the classifieds segment. The website design adopts a simplified model that facilitates basic functionalities that a classifieds marketer targets. In terms of the value addition concept to the classifieds business, Gumtree not only makes it possible for businesses to list their services for marketing purposes but also facilitates a smooth virtual market operation for a couple of business lines (Gumtree 2011). To this end, the classifieds market continues to grow in the UK and across the world, making it possible for ventures and acquisitions that facilitate harmonized business across the entire global market. The pricing model that targets mass visitation adopts a promotion fee accompanying visual enhancement for ads on the site. However, certain ads such as rentals, vacancies as well as marketing of service businesses attract a direct charge upon registration for admission. Discounted rates provide additional incentives for registration of clients wishing to post their ads on the website. Job ads in the UK attract fees of between £14.95 and £29.70 depending on the proximity to London for the job location. Corporate rental clients enjoy an ad quota free of charge in the initial two ads and thereafter, £9.95 applies. In terms of service charges, Gumtree charges £4.95 to businesspersons with local services in London whereas outsiders enjoy free postings. iv) Audience Profile From a snap view of the website particularly from the ad captions that conspicuously decorate the face of the front page, the audience profile immediately comes into mind. Trade enhancement and facilitation ideas dominate the information that the ads claim to benefit the audience. The audience characterization therefore seems to constitute both buyers and sellers. The market supply and consumer ends constitute the target visitors for the Gumtree business model that aims to bring trade players closer on a virtual platform. As explained above from the Rappa’s business model perspective, brokerage facilitation that offers an intermediary’s role to business clearly manifests in that companies register to advertise their business to visiting customers. Most dominant audience include Caucasians, young women and is preferred among all levels of education (Alexa 2012). In terms of the classification and categorization of visitors or prospective audience to the Gumtree.com platform, several classes of the buyer and seller ends depend on the type of business needs. In terms of the sellers, classifieds services extend to rentals and properties, corporate job adverts as well as services. Business categories in terms of goods and services facilitation emerge as possible classes with a wide spectrum of dealers ranging from retailers and wholesalers to manufacturers and producers. With over two million ads on vacancies, homes and a long list of services, different categories emerge for the target markets in the UK particularly in London and across Europe. With the acquisition of Gumtree by eBay, the list of suppliers and potential customers characterizing specific markets expanded and potential growth into the future looks promising. Despite the fact that the highest traffic for the website’s visits originates from the UK cities, with London taking up the greatest share, presence on the global market platform through the Kijiji concept seems to increase demand for different markets available on the global arena. From the presentation of the services appearing on the home page for Gumtree classified, perceptions of how effective the company is in serving the appropriate market may be spotted. In terms of the size of the lists for various products and service that registered customers offer, signs of success in meeting objectives of capturing as many customers as possible manifest conspicuously. In line to the possibility of a balanced business trend, such a high concentration of registration and ad posting by sellers is an indication that sellers closely follow the developments in the website. Concentration of suppliers on the website could generate certain obvious market response from the buyers who frequent the website in search of their shopping needs. To crown such a spirited and accurate coordination of business, the ranking of the website in the UK and promising frequenting trends from the market indicate the untapped potential and lucrative opportunity that the market has for the company (Sostre 2007, p65). Continued digital civilization across the world, thanks to the information and communication technological advancements to a nearly constant online business presence for buyers and sellers raises the stakes for success in the industry. Audience populations for online business platforms continue to rise across the world at an unprecedented rate, prompting a sudden shift in business operations to the ecommerce niches. Gumtree audience within the global network by Kijiji arrangement will place the company at the higher end of ecommerce services not only in the UK but also across the entire global market. As an illustration of the opportunity for ecommerce and online presence by businesses, the growth of connections on the social media such as Facebook and Twitter and the subsequent business reorganization to adapt to the rapidly changing consumer behaviours elevate the role of online presence. Gumtree market segmentation perhaps illustrates by the perceived differences in charging ad postings and registration for different services. As highlighted above, there are certain registrations and ad postings that attract a higher charge than others and other are completely free of charge. In terms of the classification of the various markets and charges thereon, it is certain that Gumtree adopts a specific market segmentation approach with lower, middle and higher segments. Apparently, the treatment of ad registration for Londoners and outsiders indicate the protracted move to welcome business listing for the business fraternity beyond the borders of original territory. As a cautionary approach, Gumtree embraces a strategy where new customers enjoy a welcome treatment before the introduction of charges. Analytical data from Alexa supports the market presence, which is concentrated in the UK and the move to attract outsiders through incentives and discounted charges seems informed on that line. A generic target for the mass audience captures the wide category of business opportunities on offer at the website. v) Web Evaluation a) Information Design/ Content Despite the expectation that the Gumtree business type offers current business data and information, the last update appearing on the design happened in 2011. Dealing with business activities as the website does requires constant update for every detail that facilitates customer confidence that the information on classifieds is up to date. The arrangement of the classifieds lists appears clumsy on the home page, perhaps making unappealing impression for the visitors. On the update functionality particularly with regard to posting and deleting of ads, there are issues with time allocated for different executions. Communication and feedback adopt an immediate response on an online chat, but somewhat concealed when compared to the projection of the ads lists. The display of information on the website employs the UGC to an effective application for the various business functionalities largely employed in the Web 1.0 platforms. Technical hitches in the search options would not emerge if the organization of the classifieds adopted a category approach eliminating the clumsy appearance. A very poor usage of media components exists with few images, no video or other geo-location tools. The Gumtree website does not experience browser optimization issues, thereby meets the 80:20 rule. b) Navigation Design As mentioned above, there are apparent issues with clumsiness of lists that greet the audience from the home page. Structuring the display on locations and business on long lists may augur well with display functions but affects the appearance. Improvements benefits would emerge if collapse menus for different categories existed to reduce filling up space unnecessarily. Internal search engine is easy to use and appropriate for business functionality for such a company. The 3-click rule appears to work well and the click through issue does not arise at the website due to the simple listing right from the home page. The Gumtree website enables the navigational flexibility that breadcrumbs enable thereby assisting in completion of tasks by reverting to previous pages. The use of cookies on the design enables the user to trace ads visited recently alongside a functional site map. The application of Nielsen’s heuristic design on the website facilitates the reduction of memory load thereby enabling navigation and execution of tasks. However, the website is still slower than 58 percent of websites assessed by Alexa at a speed of 1.612 seconds. c) Presentation Design A clear branding concept emerged on the Gumtree with a clear logo backed by a green background. Hanging captions of savings of up to 75 per cent complement the brand on both sides of the central content area where classified lists exist. The presence of a clear tag on top of the home page citing the number of ads exceeding the 2.1 million mark indicates the brand concept that the company enjoys. Despite the lack of a clear purpose in writing on the face of the home page, the implied presentation shows that the company deals in ads for a variety of business. Poor graphical content shows that the website could do better in several presentation concepts. Loading performance for the website rates fairly due to simplified design and few graphics and images do not affect the speed of loading. White space usage attributes balance with the graphical content of the site making it have a balanced contrast and colour usage dominated by green. The appearance of the website is similar in different browsers apart from the distribution of the ads, which appears to be clumsy as mentioned above. Hotspots and proximity complexities are not an issue on the website since the main links distribute evenly across the page. Location of vital calls to action links serves the website’s purpose, which is linking trade parties. d) Accessibility Accessibility score of the website is commendable for normal end users, but a major weakness appears for visual aides to the visually impaired. Partial visual impairment would be a difficulty for the audience since the size of the font used is too small in order to accommodate long lists of ads. Enhancement of accessibility would entail addition of visual and audio aides on an improved graphic utilization for the site. Lack of tags for use by blind visitors lowers the accessibility rating for the website. Font size is too small for uniform reading comfort across the audience types and the lack of font adjustment tools does not improve the accessibility options. e) Interaction and Data Exchange There are minimal functionalities for exchange of data except for simple communication needs that do not need heavy loading needs and it is not heavily datacentric. To this end, the application of intelligent algorithms and cookies for enhancement of data exchange are simple and effective. Simple personalized history of visits exists and enables tracking of ads visited. The ‘contact us’ functions of the website do not have major issues despite tiny font size for the top menu where it is located. User data provided for contact and communication only provide simple transaction facilitation and support unless payments and fees collection are involved. Registration concepts for the website are in tandem with the transaction needs of the website. f) SEO/ Visibility and Traffic Generation Gumtree.com search attributes for various products and services listed on the home page enable an easy connectivity with major search engines. However, with the presence of more seasoned competitors such as Amazon.co.uk and Amazon.com, Gumtree.com seems to lag behind. The possibility of searching for an ad and location at the same time enable visitors to have an easy search experience on the website. Traffic rank for the website visitation on the global arena fluctuates between 860 and 906 for gum tree.com while that of amazo.co.uk ranges at around 108 and 110. Metadata index for the gum tree.com operations is perhaps below average when compared with most advanced data exchanging websites. Key word tags improvement for the website need constant updating through SEO review for newer products and services on offer. Linking ad owners with their clients contributes to the bulk of the business objectives on which the website operates. vi) Competitor Analysis Amazon.co.uk ranks at position 10 in the UK according to alexa.com website assessments and rankings. To counter the competitive forces launched by amazon.co.uk and other related companies such as amazon.com, Gumtree adopted the venture where eBay acquired and took over for better global market presence. However, the existence of Gumtree as a distinct company as opposed to complete takeover with change of brand name continue to enable eBay to strategize for different markers under the Kijiji umbrella ventures. In entering into the venture, Porter’s model of business strategy falls into place at gum tree.com. On one hand, it is possible to launch a global presence that other competitors such as Amazon occupy (Porter 2008). Supplier and customer power within the Porter’s perspective obtain strategic consideration from Kijiji presence across the world. Gumtree specialization inside the UK counters threats of new entrants inside European market from the Kijiji concept. Threat of substitute supplies in the classifieds market is tackled by continued quality and customer retention strategy forged from pricing strategy at gum tree.com. One basic concept that the internet usage offers the global classifieds business section is the use of social media for advertising and customer care. Application of such an opportunity at gumtree.com to reshape business potential is poorly manifested. In order to raise online presence for the ecommerce functionality if the website, more mobile devices customers must form the marketing targets for Gumtree. Summary and Overall Assessment The consideration of the appropriate business model and paying enough attention to the ecommerce concepts relevant to such a business form the basic secret to success. At gumtree.com, identification of the classifieds category of business facilitates provision of connection services to the market players. Attributes of the website determine how successful customer visits are resulting to sales. In view of the design, accessibility, search engine optimization, interaction and navigation for the website, Gumtree requires certain enhancements in order to launch a successful competition and market presence. Ecommerce success is analyzed by web analytics data that demonstrates why gum tree.com ranks between positions 860 and 906 on the global assessment. In view of the strategy adopted to deal with competition, gum tree.com acquisition by eBay seems to factor in fundamental considerations as proposed by Porter’s five forces model. Three considerations for the personal rating of the gumtree.com website namely, UK ranking, global ranking and classifieds category ranking. In view of the assessment data provided by alexa.com and quαntcast.com for the UK and US market sections for gumtree.com, the company has a chance to perform well in the UK and a competitive threat lurks in the global arena (Quαntcast 2012). Ranking in the UK as a top 30 ecommerce player forms a basis for a personal rating of 10 out of 20 in the UK. In terms of the global rating at 868 on the global level, a personal rating of 17 out of 20 on the global level suffices. Perhaps in terms of the category of classifieds business model, the rating would increase to 3 out of 20 for the UK and 11 out of 20 on the global arena. Recommendations and Conclusions For purposes of improvements for the website design and business strategy in use at gumtree.com, a few recommendations can be formulated. Firstly, the design of the homepage seems clumsy and accessibility qualities are affected by the font size. The appropriate approach for the correction of such a problem is creation of collapse menus and a simple link connection design. Secondly, lack of a site persona makes the website ambiguous and generalized (Boag 2009). Creation of specific mission and vision statements on the homepage would make tremendous contribution in designation of a site persona. Additionally, organizational heads portraits with clear welcome notes would facilitate acquisition of the persona attribute for the site. In view of the connectivity with the social media emerging market opportunity, clear links ought to exist for the website to enjoy extra marketing benefits. In conclusion, the website attributes presented by the design must correspond with the nature of audience and applications made to meet the end user needs. For purposes of ecommerce, close studies on the consumer behaviour cues form a fundamental business strategy concept. Relying on the web analytics data to formulate business strategy implies that the missing links to competitive and productive business can be found on online performance assessment. Based on the continued innovation improvement in terms of understanding business processes as supported by information systems, ecommerce has a bright future. Website business functions such as those illustrated by gumtree.com above can be enhanced through application of assessment findings and recommendations. References Alexa (2012) Gumtree.com, [Online] Available from [Accessed 5 May 2012]. Boag, P. (2009) Site content: how site personas can enhance your site, [Online] Available from [Accessed 5 May 2012]. Eisenberg, B. (2005) In Webtrends, Best of Web Analytics Guide: 12 Timeless Articles and Insights from Marketing Experts. New York, NY: Incisive Interactive Marketing LLC. Getting, B. (2007) Basic definitions: Web 1.0, Web 2.0, Web 3.0, [Online] Available from [Accessed 4 May 2012]. Gumtree (2011) More than 2,148,425 ads for you to find a home, job, car or vintage record anywhere in the UK, [Online] [Accessed 5 May 2012]. Porter, M. E. (2008) The five competitive forces that shape strategy, [Online] Available from [Accessed 4 May 2012]. Quαntcast (2012) gumtree.com: traffic in UK and US, [Online] Available from [Accessed 4 May 2012]. Rappa, M. (2010) Business models on the Web, [Online] Available from [Accessed 5 May 2012] Ritson, N. (2011) Strategic Management. Frederiksberg, Denmark: Ventus Publishing ApS. Sostre, P. (2007) Web analytics for Dummies. Hoboken, NJ: Wiley Publishing. Read More