Business Case Study

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  • Business Case Study

    1. 1. EtsyPresented by: The Marketing SweetheartsMay 13, 2012
    2. 2. CLICK AnalysisCompetitive Advantage: Etsy is not just a place to sellitems, it is a community where you can message sellersand buyers, subscribe to your favorite sellers andcollaborate on ideas with like-minded people.Likes and Interests: Anything homemade and/orvintage was of interest to Etsy’s founder. It was oftensaid that “Rob Kallin is interested in artists andcreators of the world.”In Demand: Etsy satisfies the demand of manyAmericans today to be able to able to buy Americanmade products. The uniqueness of their product helpsgenerate the demand for their product as well.
    3. 3. CLICK AnalysisTarget Market: Vintage enthusiasts and consumers thatpurchase homemade items. Small start up companies thatspecialize in vintage and homemade items or skilled individualsthat to earn an extra income.Knowledge and Background: Rob Kallins has a background inart and business which is how we was able to see the need for aplace where creative individuals can buy and sell unique items.
    4. 4. SWOT AnalysisStrengths Weaknesses*Offers a place to sell items at a low cost *Self-promotion is required to drive traffic to your*Has an easy to operate site for anyone with basicproductknowledge *Limited ability to customize a sellers own Etsy*Adds the community experience to buying and profileselling *To utilize the forums as a marketing tool, sellers*Offer a mobile site and IPhone app to keep must spend a lot of time on themconsumers connected *Limited number of tools for sellers to use to promote their productsOpportunities Opportunities*Increased demand for American made goods *Increased demand for American made goods*Vintage styles are becoming more popular *Vintage styles are becoming more popular*Large number of people looking to work from home *Large number of people looking to work from homeor earn a second income or earn a second income*A target market to filter both sellers and buyers *A target market to filter both sellers and buyers
    5. 5. Competitor Analysis Handmade Artists Handmade Artists is just like Etsy in that it offers a place for people to sell their handmade goods. According tostatistics found at Alexa.com Handmadeartists.com is not nearly as popular as Etsy.com is, but they do offer somegreat features that Etsy does not. The first being a monthlysubscription rate rather than a per item fee, members pay 5 dollars a month or 50 dollars a year. Handmade Artists does not charge per item either. In our opinion these key factors will help this company become more popular and increase their revenue over the next year. This is mainly due to the low cost and community feel.
    6. 6. Top 3 ProblemsOpening a shop to sell handmade goods can beexpensiveLimited access to consumers when having own store/websiteNo place to sell goods with an active community todiscuss and promote
    7. 7. Top 3 SolutionsCreate a place for everyone to sell with a lowerprice than running a store.All stores can reach those in every state and byusing a search engine buyers can find your itemsInclude a community on the site for discussiontutorials and many other useful and interestingtips and tricks
    8. 8. Business Model Business Model Canvas KP#Key#Partners# KA#Key#Ac7vi7es# VP#Value# CR#Customer# CS#Customer# # # Proposi7on# Rela7onships# Segments# +  Commercial# +  Pla9orm# # # arts#and#cra3s# management# -  Over 7 million +  Self+service# +  Online#shoppers# suppliers# (IT)# searchable looking#for# handmade +  Automated# homemade#and# +  Monitoring# and vintage vintage#items# fraud#sellers# items +  Community# and#items# +  Independent# ar7sts#and# +  Maintaining# -  Attract a cra3ers# user#community# global # community of +  Vintage#item# shoppers sellers## -  Specialized KR#Key#Resources# search options CH#Channels# # such as # +  Engineers# ShopLocal +  Direct# +  IT#systems# -  Great side +  Online# +  Brand# business for +  Mobile#apps# “hobby- preneurs” -  Access to comprehensiv eSeller’s ratings C$#Cost#Structure# R$#Revenue#Streams# # # +  Pla9orm#costs#(IT)# # +  Lis7ng#fee#of#20#cents#for#each#item# +  Support#staff# +  3.5%#of#each#item#sale# +  Marke7ng#&#promo7ons##
    9. 9. INDUSTRY IMPACTReduces enormous costs of opening up brick and mortar storesto sell handmade and vintage itemsCreated an active online community of people who arepassionate about handmade items not found in mass retailersEnabled independent artisans to easily start a business andreach out to global shoppers without worrying abouttransactional headaches
    10. 10. Alternative BusinessBrokerage: Offer daily deals like Groupon in the shopper’s local areato facilitate more personal relationships between buyers and sellerslocally and as a result promote repeat businessAffiliate: Offer buyers to promote their favorite shops to their friendsvia email or social media platforms (e.g. Facebook) and providefinancial incentive if their friends and family purchase from the store.Utility: Offer a free, easy-to-use visual online tool for buyers tocustom create their desired products and have sellers bid oncompleting the project. This can bring back Etsy’s Alchemy serviceswhich shut down because it was too cumbersome to use by bothbuyers and sellers.
    11. 11. ReferencesAdam, T. (2011, January 27). Etsy is phasing out Alchemy. Message posted to http://www.handmadeology.com/etsy-is-phasing-out-alchemy/Alexa (nd). Etsy.com. www.alexa.com. Retrieved May 10, 2012, from http://www.alexa.com/siteinfo/etsy.com#Alexa (nd). Handmademusicinas.com. www.alexa.com. Retrieved May 10, 2012, from http://www.alexa.com/siteinfo/handmadeartists.com#A./Yahoo Contributor Network, N. (2009, July 10). Pros and cons of selling on Etsy. Yahoo Voices. Retrieved May 9, 2012, from http://voices.yahoo.com/pros-cons-selling- etsy-3758966.html?cat=3Chafkin, M. (2011). Can Rob Kalin scale Etsy?. Inc. magazine April 2011. Retrieved May 8, 2011, from http://www.inc.com/magazine/20110401/can-rob-kalin-scale- etsy.htmlDissyb (n.d.). Selling on Etsy, E-Bay & Amazon. Dissybsbazzaar.blogspot.com. Retrieved May 9, 2012, from http:dissybsbazaar.blogspot.com/2011/03/selling-on-etsy-e- bay-amazon.htmlDrew. (2010, October 26). Is Etsy dying. Message posted to http://skinnyartist.com/is-etsy-dying/Evans, T. (Editor). Creating Etsy’s Handmade Marketplace [Online exclusive]. Wall Street Journal. Retrieved May 13, 2012, from http://online.wsj.com/article/SB10001424052702304370304575152133860888958.htmlEtsy (nd). Etsy.com. Retrieved May 9, 2012, from http://www.etsy.com/Handmade Artists (nd). Handmadeartists.com. Retrieved May 10, 2012, from http://handmadeartists.com/Similar Sites (nd). Similar Sites to Etsy. Similar Sites . Retrieved May 9, 2012, from http://www.similarsites.com/site/etsy.comSmith, J. (2011, November 17). Top 10 marketing tips from full time Etsy sellers. Retrieved May 8, 2012, from http://outright.com/blog/top-10-marketing-tips-from-full-time-etsy-sellers/(Untitled photograph of Etsy).(2012) Retrieved May 9, 2012, from: http://gigaom.com/2012/02/02/etsy-to-become-an-indie-biz-one-stop-shop/Zhang, Y. (2011). The story behind Etsy’s do-it-yourself economy. Retrieved May 8, 2012, from:http://catalystsdr.com/2011/06/the-story-behind-etsy%E2%80%99s-do-it-yourself-economy/

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