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Bringing Online Strategy into Focus with Magento

Josh Colter · Nov 4, 2008 · Leave a Comment

You have decided to create or update your own online store. Great. Now, how do you translate your hard work and tools like Magento into profits? Technology will amplify and accelerate a winning strategy, but first you must have a focused strategy to become number 1.


…focus is difficult to achieve because it means giving something up. It runs counter to our most basic marketing instinct: If we narrow or offering, won’t we narrow our opportunities for profit? Answer: Not necessarily. Its often better to be number one in a small category than to be number three in a large one. At number three your strategy may have to include a low price, whereas at number one you can charge a premium. History has shown that it pays handsomely to be number one in your category – first, because of higher margins, and second, because the risk of commoditization is almost nonexistent. Yet number two can also be profitable, despite a smaller market share. Number three, or four, or five, however, may only be worth the effort if you think you have a realistic shot at becoming number two someday.

Taken from Marty Neumeier’s The Brand Gap



Being number 1 requires focus…and it pays. How do you translate focus to an ecommerce platform? In my opinion, you use a strategy similar to CSN stores: build web properties with very tightly focused product offerings. So instead of building homefurniture.com you create coffeetable.com, daybed.com, and diningroomtable.com. This strategy has put CSN in one of the top two spots and made them very profitable.



Magento’s ability to control multiple websites and stores from one Administration Panel makes it an attractive ecommerce platform for the focused eRetailer. Drop us a message using the contact form below if you would like to learn more.

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