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ELC 498. Day 15. Grades for Round two Posted Case Study 5 A’s (just over the cutoff) SD of 0.64 Participation 3 A’s & 2 B’s I expect more interaction with Presenter October 31 -Today Sendwine.com – Jeff Recap of online retailers Intro to online brokers. November 3 Amnesty Day
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ELC 498 Day 15
Grades for Round two Posted Case Study 5 A’s (just over the cutoff) SD of 0.64 Participation 3 A’s & 2 B’s I expect more interaction with Presenter October 31 -Today Sendwine.com – Jeff Recap of online retailers Intro to online brokers November 3 Amnesty Day November 7 DLJDirect – Donnie Carpoint – Kristin November 10 Rosenbluth International and Biztravel.com –Anup Round 3 Grading due November 14 Wit Capital – Steve Recap of Online Brokers Intro to Online Market Makers Agenda
November 17 Priceline WebHouse -Jeff November 21 eBricks.com -Donnie November 28 Sothebys-Kristin Recap of Market Makers Intro to Networked Utility Providers December 1 Adobe Systems –Anup Round 4 Grading due Recap of Networked Utility Providers Intro to Application Service Providers December 5 Everdream -? December 8 Doubletwist -? Recap of Application service providers Student Case studies due December 12 Student Case study Presentation December 15 Student Case study Presentation Final Exam Assigned Final weeks Final Exam Due Agenda
Recap Online retailers • RETAILERS • Petstore.com; Staples.com; Sendwine.com • Which of these were more concerned about valuation than a sustainable revenue Model? Why?
Issues Facing Online Retailers • Impact of ‘bots’, • Impact of ‘information intermediaries’ (Egghead vs. CNET) • Become a vertical portal/infomediary? • How to create stickiness? • Distribution problems
Issues Facing Online Retailers • GBF? • Network effects • None • Economies of scale • Some • CLV • Depends on product • Retention • Depends on Product • GIRF? • Do to captial market stuctures there was no reward for getting ot right first
Online retailers • GBF because for online retailing it was a game of “survivor” • Fixed retail market in terms of value • For the most part the size of the retail market is determined by economic factors • GDP, CPI, Oil prices!, etc. • The online retailer has limited ability to add to market suze • You must cannibalize from brick and mortar or catalog • Online removes regional advantage (death of distance) • Competition increases • Marketplace fractionalizes into two possibilities • Commoditized products • Price is driver • Margins are tight – efficiency is the key • Boutique products • Uniqueness/quality/service is driver • Margins are high – marketing/branding is the key • There is NO middle ground!