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Chapter 11


Amazon.com - 2002
Publication Date: Nov 21, 2002/Revision Date: Feb 13, 2003
Author(s): Stig Leschly, Michael J. Roberts, William A. Sahlman, Todd Thedinga
Product Number: 9-803-098
Length: 31p.
Description:
Describes the evolution in Amazon.com and its business model since its founding. Specifically, discusses Amazon's transformation from an e-tailer to a commerce platform and its marketplace initiative, which has driven this. Also describes the economics of various commerce models that Amazon employs and a decision confronting Jeff Bezos regarding how the company should participate in the apparel segment. Teaching Purpose: To explore the changing dynamics of the online retailing/e-commerce world and the evolution in Amazon.com's business model that has transpired. Helps students understand the organizational, financial, and leadership challenges of this dynamic marketplace and the underlying economics of various commerce models. To analyze the changes Amazon has made to date and examine the opportunity in the apparel sector that the company is exploring.


AUDIBLE.COM
Zietsma C ; Mark K; Mitchell J
9B04M025, Ivey Case
Description:
Audible Inc. is one of the largest providers of audio content, such as books, magazines and newspapers. The company has a large "library" of hours of content, strong alliances with partners including Microsoft, Amazon and Random House, and a growing customer base, but the company has lost money since it began. The chief executive officer and chief financial officer must decide how to raise funds to keep the company going, while maintaining its partner and customer relationships.


Collabrys, Inc. (A)--The Evolution of a Startup;
Leonard, Dorothy;DeLacey, Brian; Harvard Business School Publishing; 10/23/2002;
(31 pages)
Reference Number: 9-603-064
Revision Date: 12/02/2003
Description:
The CEO of a two-year-old start-up must now decide whether to become a technology provider or a service agency. In a time of enormous uncertainty about the viability of various business models for Internet-delivered services and products, Collabrys has survived the Internet bubble burst by partnering with brand name large companies and by responding to market feedback. This case traces the company from its earliest days and its original value proposition through to a point at which the two very different future strategies both appear feasible. Originally funded by venture capital, the company has changed key personnel, experimented with different distribution and partnering schemes, developed some sophisticated intellectual property, and raised a second round of funding. Teaching Purpose: Demonstrates the difficulty of growing a company when there is so much uncertainty. Also raises generic issues about the benefits and costs of starting a company based on a technical capability rather than an identified need. Finally, students may gain an appreciation for the way that founders and early employees shape the direction of a company on the basis of their own personal experience, background, and knowledge.


eBay (A): The Customer Marketplace
Publication Date: Aug 29, 2001/Revision Date: May 30, 2003
Author(s): Francis X. Frei, Hanna Rodriguez-Farrar
Product Number: 9-602-071
Length: 17p.
Description: Since its inception in 1995, the popular Internet marketplace company eBay has enjoyed tremendous success, a key to this success being eBay's ability to keep its cost structure in check while significantly increasing its customer base and transaction volume. From merchandising to order fulfillment to quality control, eBay customers together perform myriad tasks typically performed by companies. The cornerstone of the company's operational success is the technological infrastructure that supports much of this work. The dilemma presented in this case concerns the company's recent practice of allowing large businesses, such as Sun and IBM, to play a more prominent role on the eBay site. The company must decide how to respond to complaints from some of its best customers about the increased presence of such large corporate customers. Teaching Purpose: 1) To develop a framework to help students identify what a firm does operationally to satisfy the specific needs of its target market, 2) to introduce students to the notion of customer participation in firm production processes and provide an example of how a firm can design large amounts of this participation into its business model, 3) to develop the concept of the service-wrapper, which defines the elements of a service relationship that a firm must perform to maintain control of the relationship--by performing these few tasks, the firm is in a position to outsource the rest of the service interaction either to third-party firms or, in the case of eBay, to customers, and 4) to explore self-service in a variety of settings, understanding how the benefits to the consumer and firm vary under different circumstances. Teaching Notes: eBay (A) and (B), Teaching Note (5-602-126) 23p Supplemental Materials: eBay (B): Combating Fraud (5-602-126) 1p; eBay (C): PayPal Merger (9-603-042) 2p


GE’s Digital Revolution: Redefining the E in GE
Publication Date: Apr 10, 2002/Revision Date: May 28, 2004
Author(s): Christopher A. Bartlett, Meg Glinska
Product Number: 9-302-001
Length: 24p.
Description: Designed to illustrate the structure, culture, and management processes behind the transformational change of GE, this case details the implementation of the e-business initiative--the last of Jack Welch's four company-wide strategic thrusts. First, summarizes the 20-year transformational change process that Welch led, detailing the strategic, organizational, cultural, and management initiatives he put in place. Then traces how Gerry Podesta, the e-business head in GE Plastics, implements the new initiative. In doing so, highlights how the "social architecture" (culture and values) and "operating systems" (systems and processes) help the company drive through changes that have it named Internet Week's top e-business of 2000. Ends with questions about the effectiveness of successive pushes on "e-sell," "e-buy," and "e-make" and whether the e-business teams should be broken up and rolled back into the company. Teaching Purpose: 1) To examine the process of transformational change, and particularly the role of structure, systems, processes, and culture required to support it; 2) to illustrate effective strategy implementation in large companies; and 3) to examine the role of top-, middle-, and front-line management in driving change.

Supplementary Material(s): GE’s Digital Revolution: Redefining the E in GE, Video (9-303-801)


Google, Inc.
Publication Date: Jan 20, 2004/Revision Date: Apr 19, 2004
Author(s): Thomas Eisenmann, Smita Bakshi, Sebastien Briens, Shailendra Singh
Product Number: 9-804-141
Length: 16p.
Description:
As its managers prepare for an early 2004 IPO, Google Inc., the world's leading provider of web search services, faces several strategic challenges. In a business without switching costs, how can Google secure sustainable competitive advantage? Could personalized search technology lock in users? Should Google pursue growth opportunities in localized search? Finally, how should Google respond to efforts by Yahoo! and Microsoft's MSN to develop in-house search solutions? Should Google position itself as a fully featured mass market portal, in direct competition with Yahoo!, MSN, and AOL? Or, should Google avoid head-to-head rivalry and merge with an established portal? Teaching Purpose: To build students' understanding of: 1) switching costs; 2) network effects, in the context of the market for web search paid listings; and 3) the options confronting a startup that is increasingly viewed as a competitive threat by its largest customers. These options include head-to-head attack through forward integration and merger with a major customer.


Tower Software
Publication Date: Aug 18, 2003/Revision Date: Sep 26, 2003
Author(s): Constance E. Bagley
Product Number: 9-804-047
Length: 3p
Description:
Tower Software (TS) is a publicly traded corporation engaged in multiple facets of the computer software business. Its flagship product, TS SERVE, is a successful proprietary network operating system. TS also develops and sells applications software for word processing, e-mail, spreadsheets, image manipulation, and home banking. TS is developing software tools that can be used to write programs for data manipulation on internal company intranets. TS's newest offering is TS-NET, an online service that combines TS's Columbus 3.0 Internet browser with original content and links to TS's airline, hotel, and rental car reservation site, GoNow.com. TS hopes that TS-NET will become a popular portal site from which users would initiate electronic commerce and banking transactions.


Webvan: Groceries on the Internet
Publication Date: Nov 17, 1999/Revision Date: Mar 25, 2003
Author(s): John Deighton, Kayla Bakshi
Product Number: 9-500-052
Length: 17p.
Description:
What are the prospects for grocery shopping on the Web? This case invites a comparison of seven business models, with particular emphasis on Webvan. Why does the investment community value Webvan at $7.8 billion after less than six months of operating experience, and Peapod, which has had seven years to learn the ropes, at $200 million? Explores online consumer shopping behavior, the economics of online and offline grocery distribution, and the challenges of uniting a pure information business with a mundane package delivery service. Teaching Purpose: May be used in an introductory marketing course to begin exploration of shopping in the information age, or in a course on Internet marketing or channels of distribution.

Teaching Notes: Webvan: Groceries on the Internet, Teaching Note (5-503-049) 6p.


Yahoo! Business on Internet Time
Publication Date: Jul 10, 1999/Revision Date: Jan 6, 2000
Author(s): Jan W. Rivkin, Jay Girotto
Product Number: 9-700-013
Length: 27p.
Description:
In the wake of major competitive moves, CEO Tim Koogle and his senior team at Yahoo!, an Internet portal, must decide whether and how to adjust their strategy. Following deals between AOL and Netscape, Excite and @Home, Infoseek and Disney, and Snap and NBS, Yahoo! faces the prospect of being the last portal without a significant partner. Students must grapple with the benefits and costs of integration in the rapidly changing world of the Internet. Teaching Purpose: Examines how a company organizes itself to formulate strategy in the midst of rapid environmental change. Reveals how external turbulence puts new pressures on a firm's strategy, its organizational structure, and its managers. Considers how one successful company has structured itself to cope with severe environmental uncertainty. Special emphasis is given to the interactions among Yahoo!'s functions and the effects of those interactions on firm flexibility. Also permits students to examine the structural attractiveness of the portal industry and the strength of Yahoo!'s position in the industry.

Teaching Notes: Yahoo! Business on Internet Time, Teaching Note (5-700-086) 20p.

Supplementary Material(s): A Note on Organizational Design at Yahoo! (9-602-112) 3p.


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ISBN: 0-13-141168-3
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Copyright: 2005
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