COMPETING WITH IT AND THE INTERNET
Class 2. January 23 - Tuesday
Prepare:
ASSIGNMENT QUESTIONS:
1. What are the strength of ? What key values do its virtual business have over its physical business—unmet needs of its physical business?
2. Should bundle Internet access services with its ethnic portal? What are the trade-offs?
3. Should target strictly African-Americans, or also pursue the “urban market,” a young (aged 15-24), cross-racial segment with distinctive tastes in music and fashion?
4. What advice would you provide on how to determine the specific customers the company is to pursue?
March 20, Tuesday – Prepare:
ASSIGNMENT QUESTIONS:
1. Does compete in a “winner-take-all” category? If so, what are the implications for the company’s strategy?
2. what would you recommend to management with respect to the following decisions:
a. Would you focus on generating benefits to buyers and sellers of construction materials through increased liquidity (i.e., bringing more buyers and sellers into contact with each other) versus transaction processing cost savings?
b. Would you accept a major equity investment from a large buyer or seller of construction materials?
c. Over the next six months, would you emphasize depth in a few vertical segments (e.g., heating/ventilation/air conditioning; plumbing; electrical) or breadth across all segments? Would you emphasize deep penetration of buyers and sellers in a few geographic regions, or broad reach across the U.S.?
d. Over the next six months, would you seek to deploy a bidding marketplace (routing contractors’ RFQs to appropriate distributors) or an online catalog?
3. Would you seek to develop an online marketplace ‘upstream,’ i.e., between manufacturers of constructional materials and distribution? If so, would you do so in addition to pursuing the ‘downstream’ market (i.e., between distributors and contractors), or instead of competing downstream? More generally, what are the attributes of an attractive online B2B marketplace?
April 3 - Tuesday
Prepare: Webvan: Groceries on the Internet
For each of the following companies:
Peapod
Streamline
HomeRuns
NetGrocer
Alberston online
HomeGrocer
Priceline’s WebHouse
and Webvan
1. Who is the valued customer?
2. What is the value proposition?
3. What is the value chain grocery model (Concentrate on the cost and scalability of the supply chain).
4. What indicators would you use to measure the relative success of these companies?
Class 15. May 1 - Tuesday
Prepare:
ASSIGNMENT QUESTIONS:
1. Does the Web represent an opportunity or a threat to the Boston Globe?
2. From the perspective of New York Times Company shareholders, should be required/allowed to “upsell” classified ads? (Upselling implies an end to the Globe’s policy of posting all of its print classified ads on for fee; would charge an incremental fee to any print advertiser that wished to also be listed online.
3. Given the threats and opportunities facing and its parent company, should pursue a “Get Big Fast” strategy?
4. Do you agree with the decisions made by Globe management regarding organizational reporting relationships and the coordination of activities between the Globe and ?
Class 15. May 1 - Tuesday
Prepare:
ASSIGNMENT QUESTIONS:
1. What is Staple’s competitive advantage in the online markespace?
2. Do you agree with ’s growth strategy and timing? Why? Are they following a “Get Big Fast” strategy? Would you pursue wallet share or market share as the first priority? Or like , would you pursue both with vigor?
3. Do you think that should expand into the SOHO services market? If so, should it ally with external service providers or create services internally?
4. What should ’s pricing strategy be, relative to the competition? What should their pricing strategy be relative to Staples’ catalog and Staples’ retail stores?
5. Do you agree with the high level of organizational and operational integration between and Staples Inc.? What are the risks and/or disadvantages associated with the dotcom division being so closely allied to the parent?
6. Do you think that Jeanne Lewis will be successful in creating a vibrant “dotcom” culture at ? Why or why not? If you were Kelly Mahoney, would you take this job?
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