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1.What business do you decide to venture into? Justify the reasons you come-out with the decision?
2.Describe FIVE characteristics and FIVE skills you have identified in you that make you a successor in that business?
3.With reference to the Porter’s Model, analyze the environment to determine the factors that influence your business?


1. Affiliate marketing. This is the act of being a brand advocate for one or more companies through your own website or through other websites and hence marketing for the company and earning revenue online.

Reasons for venturing into this line of business include:-

  • It requires little or no start up cost, all one has to do is set up a website and sign up for an affiliate program.
  • It is very scalable and can be easily transformed into a huge business
  • It has many monetization sources through different marketing channels and customer acquisition sources
  • It creates self employment from where you can advance professionally and make your own decent living.
  • It is very flexible since you can sell anything you want.

2. Describe FIVE characteristics and FIVE skills 

Characteristics include:-

  • Energy- I have a lot of enthusiasm when working in any area of interest and seek to always get things done.
  • Entrepreneurial spirit- I’ve always had an entrepreneurial spirit and always dreamt of starting my own business
  • Patience- I have the patience to watch my business grow and take root in the market after starting it up
  • Pragmatic –with the ability to think outside the box, I can formulate unique solutions for just about any problem
  • Visionary- I can envision the business growing into a formidable force with time with effort and strategy.

Skills I have include:-

  • IT skills- These involves the information technology aspects of the business, including use of internet and the web and related technologies.
  • Planning and strategy skills- The ability to conceptualise, develop and refine an idea into a workable plan and keeping in mind key factors.
  • Marketing skills- A working knowledge of marketing principles as well persuasive skills.

  • People skills – I know how to work with people, to share a vision with them and to reach out to them.

  • Communication skills- I can communicate fluidly with people and put across my message or idea very clearly

3. Bargaining power of suppliers

Markets with few suppliers and a huge customer base favor the existing suppliers who gain more power over their customers. Lately, there has been a surge in the number of affiliate marketers since the fad caught on. The marketers thus may have little bargaining  power since the customers have a plethora of alternatives. Pricing is therefore determined on a market value basis.

Threat of new entrants

In affiliate marketing, a start up is easy since it actually costs little or nothing. No physical space or other resource is required. Furthermore, there are no entry barriers.


The rules and regulations governing affiliate marketing are not very burdensome and most of the players in this area of business have little or no problems complying with them.

Threat of substitutes

With the growing number of affiliate marketers, there is a lot a customer can choose from. A client can choose a marketer from an international platform. Therefore this makes competition considerably stiff.

Bargaining power of buyers

The affiliate marketer may have a near unlimited customer base and the power that a single customer exerts over them becomes minimal.

Competitive Rivalry in affiliate marketing

The web has a near unlimited supply of clients as well as affiliate marketers so there is a fairly balanced competitive rivalry in affiliate marketing. Internet businesses also eliminate competition based on geographical location giving affiliate marketers an even playing field.

4.  SWOT analysis.


      • The affiliate marketer is not involved in the development of the product(s) or providing the after sales support for the product.
      • The marketer can enjoy huge profit margins since he/she is not involved in the development or distribution of the product(s).


      • The marketer has little control since they are not promoting their own product
      • A website needs to have the right kind of visitors who can purchase the product(s), otherwise it could take some time before any sales occur.



      • There are a myriad of products and services that can be marketed online.
      • The internet and ecommerce are exponentially growing, further widening the consumer base as well as business online presence.
      • An affiliate marketer can make passive income, whereby they really are not involved with customer purchases


      • There are no entry barriers, so there could a considerable number of competitors
      • Affiliate offers have been known to stop being active at some time and along with that the earning capability of the affiliate marketer.
      • In the internet there is always an information security risk for consumers as well as the businesses.
      • Traffic sources can collapse at any time.


Aston, D. 5 (2017). Reasons to Start an Affiliate Marketing Business. Retrieved from

Blake, Martin; Wijetilaka, Shehan (2015, February 26). "5 tips to grow your start-up using SWOT analysis". Sydney. Retrieved from

Dion, Hinchcliffe. "Social Media Goes Mainstream". (2012, January 10). Retrieved from

Osita, Christian; Onyebuchi, Idoko; Justina, Nzekwe (2014, January 31). "Organization's stability and productivity: the role of SWOT analysis" 2 (9). International Journal of Innovative and Applied Research (2014): 23–32.

Tang, David "Introduction to Strategy Development and Strategy Execution". (2014, October 21). Retrieved from

 FTC Publishes Final Guides Governing Endorsements, Testimonials (2013, September 19). (2013-06-27). Retrieved from

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