Your SlideShare is downloading. ×
  • Like
Blown To Bits II
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Now you can save presentations on your phone or tablet

Available for both IPhone and Android

Text the download link to your phone

Standard text messaging rates apply
Published

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
555
On SlideShare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
1
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. MAR 6936-798 E-Commerce Marketing Spring 2003— Downtown--MBA Blown To Bits II Rich Gonzalez February 6, 2003 (Week 5)
  • 2. URLs
    • wsj.com (After the Bust)
    • www.freshdirect.com
    • www.fandango.com
    • www.spyderchat.com
    • www.carmax.com
    • www.kbb.com
    • www.carfax.com
    • http://cgi.ebay.com/ebaymotors/ws/eBayISAPI.dll?ViewItem&item=2402434367&category=15289
  • 3. Grading Criteria
    • Start Out With 125 Points
    • Areas for Improvement: F = Format (Cover page, Headings, T = Thoroughness A = Analysis L = Late (20% a day)
  • 4. Agenda February 6, 2003
    • WSJ and BusinessWeek Articles
    • CDP Example
    • Due For February 13
    • Blown To Bits—Discussion
    • E-Ordering
  • 5. For Today: February 6
    • Blown to Bits, p.99 – 167
    • Analysis Paper # 3
    • WSJ Online : After the Bust,” William Boston, WSJ Online, January 27, 2003
    • BusinessWeek “The Start of A Dot-Comeback,” BW, February 3, 2003 http://www.businessweek.com/magazine/content/03_05/b3818061.htm
  • 6. For February 13
    • Blown to Bits, p.221 – 229
    • WSJ Online : ”United Online Adds Subscribers, Swings to Profit in 2nd Quarter,” February 6, 2003
    • “ Hotels.com Triples Net Income But Misses Lowered Forecasts” February 5, 2003
    • Wrap UP Discussion: Blown To Bits
  • 7. “ The Start of A Dot-Comeback,” BusinessWeek, February 3, 2003
    • Web-Van vs. FreshDirect Visit site
    • Fandango Visit site
    • Red Envelope
    • How Does a Start-Up Get Investment in 2003?
    • “ Focus on the bottom line.”
    • “ Models that mimic eBay or trade in information.”
  • 8. Strategy:
    • The essence of strategy is choosing to perform activities differently than rivals do.
    • Must be flexible to respond rapidly to competitive and market changes. Michael E. Porter
    • What Is Strategy?, Nov-Dec 1996, HBR
  • 9. “ After the Bust,” William Boston, WSJ Online January 27, 2003
    • Strategy
    • 200 Online Brokerages In 2000
    • “ The difference with our previous strategy is that today we help the customer make investment decisions."
    • MORE Services—More Consulting
    • Searching For: New Online Brokerage Model
    • Self Trade and Cahoot
    • How Many Will Fail?
  • 10. 3 Fundamental Business Shifts
    • 1. Most transactions—B2C, B2B, C2C and G2C will become self-service digital transactions.
    • 2. Customer service will become the primary value-added function in every business.
    • 3. The pace of transactions and customer needs for customer service will force firms to adopt digital processes ---for survival.
  • 11. Stewart Brand:
    • “ Information wants to be free.”
  • 12. Scientia Est Potentia
    • Applied Problem: CDP Stages For An Online/Offline Purchase
    • Consumer Decision Process: Problem Info Gather Evaluate Purchase Use
    • “What you don’t know can hurt you.”
  • 13. A Car
    • MR2 Spyder
    • Where Does One Get Info?
    • Advocate Sources www.carmax.com
    • Non-Advocate Sources www.spyderchat.com
    • Independent Sources www.kbb.com
  • 14. Source
    • Advocate: Has an interest in primary transaction or related concerns
    • Non-Advocate: Has no financial interest in product or service information—i.e., fellow customer
    • Independent: Standard Issuer, Industry Evaluator, Data Provider, Regulator
  • 15. Independent: Industry Data
    • Numerous Sources
    • www.kbb.com
    • Site Visit
  • 16. Advocate: For Sale Online
    • Numerous Sources
    • www.carmax.com
    • Site Visit
  • 17. Non-Avocate:Spyderchat
    • Information Amplification Asynchronicity
    • Site Visit
  • 18. For Sale Online
    • Numerous Sources
    • http://cgi.ebay.com/ebaymotors/ws/eBayISAPI.dll?ViewItem&item=2402434367&category=15289
  • 19. Indy: Support Data
    • Numerous Sources: Industry Data
    • www.carfax.com
    • Site Visit
  • 20. Stewart Brand:
    • “ Information wants to be free.”
    • “ Information wants to be expensive.”
  • 21. Weekly Analysis Paper # 3
    • Subject: Blown To Bits
    • Length: 1.5 Pages, Cover Page--125 pts
    • Due: February 6
    • Subjects: (use bolded headings) 1. Competing on Reach 2. Competing on Richness 3. Competitive Advantage
  • 22. Competing on Reach
    • Bigger is better—Network effect
    • Critical mass
    • Reach is clutter without navigation—i.e., # of brands of cereal—too dynamic
    • Digital networks have allowed separation of navigation and the physical aspects of business
    • Blowing up the reach/rich tradeoff creates race between suppliers, navigators, retailers
    • Navigators facilitate choice but exert influence on buyers
    • Companies can COMBINE to achieve critical mass—could not do it alone
    In Class Exercise
  • 23. Competing on Richness
    • Competitors who do not/cannot reach critical mass HAVE to compete on richness
    • Information can be rich about: 1) product 2) customer
    • Information on Brands
    • Richness could create loyalty—eliminating need for navigators
    • Richness of info by navigators could lessen need for brand as shortcut in evaluation stage
    • Adding richness forestalls deconstruction
    • Marketers have so much customer data that it could impinge on customer privacy
    In Class Exercise
  • 24. Competitive Advantage
    • Navigators CA is by affiliating with interests of consumers—”buyer’s agent”
    • By breaking reach/richness constraint---you get the consumer affiliation
    • Segment of 1 with data mining, db marketing & mass customization --reduce cost of marketing & increase effectiveness
    In Class Exercise
  • 25. Deconstruction
    • Dismantling and reformulation of traditional business structures.
    Econ of Things/Econ Of Info Split Richness Reach Tradeoff Blowup Deconstruction of Biz Structures Reconstruction of Business Structures
  • 26.
    • Adding Richness Is the Best Way To Forestall Deconstruction
  • 27.  
  • 28. Change, Techno, Info, Process...
    • The Only Sure Winner Is the Customer
  • 29. What Is Wrong With This? More info, more SCA It’s Linear SCA Information
  • 30. E & W Say: More info, LOTS more SCA SCA Information Not Linear
  • 31. Richness
    • Bandwith
    • Interactivity
    • Accuracy, Validity (Reliability)
    • Security
    • Currency
  • 32. Reach
    • Number of people—at home or at work—exchanging information.
  • 33. Richness vs. Reach Encarta
  • 34. Richness
    • Phonebook
    • Ad Insert
    • Mag. Ad
    • Newspaper
    • Radio Ad
    • Salesman
    • Website
    • Experience
    • WON
    • Direct Marketing
    • Website
    • WOM
    • RFP?
    Richer
  • 35. Stewart Brand:
    • “ Information wants to be free.”
    • “ Information wants to be expensive.”
  • 36. End Here