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Edgardo Donovan (a.k.a. Eddie Donovan) is a CIO for the Department of Defense. Previously, Edgardo was the Director of Web Marketing/Design in Dublin, Ireland for the financial services division of ...

Edgardo Donovan (a.k.a. Eddie Donovan) is a CIO for the Department of Defense. Previously, Edgardo was the Director of Web Marketing/Design in Dublin, Ireland for the financial services division of First-e Group PLC one of Europe's largest e-Banks valued at 1.6 billion euros at the time.

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Mgt599 mod3case Document Transcript

  • 1. . . . . . . . . . . Babycenter.com Generic Strategies . . . . . . . . . . Edgardo Donovan Touro University International MKT 599 – Strategic Management Dr. Charul Shah Module 3 – Case Analysis Monday, February 20, 2006
  • 2. . . . . . . . . . . Babycenter.com Generic Strategies Ex.1 – Logo (Babystore.com) BabyCenter is leveraging a variety of synergistic business models under the umbrella of a click-and-mortar content driven resource center that seeks to enhance value for new parents seeking information and products related to health and child rearing. By building online and offline relationships with new parents the company is hoping that the trust it will engender will translate into a slight competitive advantage in it retail business heavily dependent on third parties as well as an online subscription model. 2
  • 3. Ex.2 – Promotion (Babycenter.com) " BabyCenter.com, the leading destination on the Internet for new and expectant parents, together with its companion site ParentCenter.com, a Web resource for parents of children ages 2 to 8, is dedicated to helping you find the information and support you need during pregnancy and in caring for a baby, toddler, or child. Having a baby is a life-changing event, and raising a child is an exciting ongoing challenge. We're here to offer guidance, with easy-to-use sites that feature original high-quality content and practical advice from trusted sources such as obstetricians, pediatricians, developmental experts, nutritionists, and fellow parents. (Babycenter.com) 3
  • 4. . . . . . . . . . . The organization’s core competency is that of an information and service aggregator given that the majority of the content is provided by affiliated third parties such as doctors and other health professionals. It can be inferred that the company in its initial stages adopted a low cost strategy given that it had not invested any money aside needed to create a new product or proprietary service for the marketplace. At best the company created informational content that aggregates products from third parties such as books, merchandise, and medical advice. “The company produces BabyCenter.com, the Web's most complete information source on preconception, pregnancy, baby, and toddler; BabyCentre.co.uk, a version of BabyCenter for British parents; and ParentCenter.com, for parents with older children. BabyCenter LLC is a member of the Johnson & Johnson family of companies. (Babycenter.com) Recently, Babycenter.com has become a business unit ot the Johnson & Johnson family of companies. The general business model has remained the same. However, the strategic flow has changed dramatically. Whereas during its inception the company aggregated content and attempted to leverage whatever commercial synergy possible now the content driven resource center serves as a community building marketing approach designed to promote the parent company’s vast line of consumer products. 4
  • 5. Babycenter.com is an example of a very fortunate success story among tens of thousands of entrepreneurial online content communities that flourished during the 1990’s (Kotelnikov). During those years many companies as well as private individuals setup web sites which ended up attracting tens of thousands and sometimes hundreds of thousands of monthly visitors. Almost every owner of these web sites must have dreamed at one point or another of an exit strategy that involved being purchased by a huge multinational corporation such as Johnson and Johnson. What made BabyCenter.com so special in the eyes of Johnson & Johnson? It could not have been huge profits. If anything the company may have overspent in creating all its content without realizing an effective revenue model or profit objectives. Maybe Babycenter.com was the leading web site of its kind the day Johnson and Johnson looked for this opportunity. Perhaps Johnson & Johnson thought that this web site, that it could have easily created on its own, had some great unseen potential. Perhaps the Babycenter.com site owner was a close friend of one of the executives of the company. The reasons behind the purchase of BabyCenter.com by Johnson & Johnson may vary and may not necessarily be based on business performance factors alone. BabyCenter is leveraging a variety of synergistic business models under the umbrella of a click-and-mortar content driven resource center that seeks to enhance value for new parents seeking information and products related to health and child rearing. By building online and offline relationships with new parents the company is hoping that the trust it will engender will translate into a slight competitive advantage in it retail business heavily dependent on third parties as well as an online subscription model. 5
  • 6. . . . . . . . . . . BIBLIOGRAPHY I. Works Cited Macmillan. Strategic Choice. Oup.co.uk, 2006. Kotelnikov, Vadim. Ten Major Strategic Management Schools. 1000ventures.com, 2006. II. Works Consulted Macmillan. Strategic Choice. Oup.co.uk, 2006. Kotelnikov, Vadim. Ten Major Strategic Management Schools. 1000ventures.com, 2006. Brown, Eryn. Imagining Toyland Without One of Its Giants. New York Times, 2004. Grant, Lorrie. Wal-Mart doesn't plan to toy much with prices ; Last year's cuts hurt other retailers and left giant thinking it slashed too much. USA Today, 2004. Foust, Dean. Things Go Better With...Juice; Coke's new CEO will have to move quickly to catch up in noncarbonated drinks. Business Week, 2004. Brady, Diane. A Thousand And One Noshes; How Pepsi deftly adapts products to changing consumer tastes. Business Week, 2004. Anderson, Douglas – Bailey, Bruce. Product Management. Madaille College, 1998 Gates, Bill - Donovan, Eddie. Launch of Business at the Speed of Thought. Microsoft.com, 1999. Bianco, Anthony - Lowry, Tom - Berner, Robert - Arndt, Michael. The Vanishing Mass Market. Business Week, 2004. Allen, Gemmy. Introduction to Marketing. Mountain View College, 2005 Gladwell, Malcolm. The Science of the Sleeper: How the Information Age could blow away the blockbuster. The New Yorker, 1999 Grove, Andy. Only the Paranoid Survive. Simon and Schuster, 1995 Gates, Bill. Business at the Speed ot Thought. Warner Books, 1999 Ries, Al – Trout, Jack. Marketing Warfare. Bantam Books, 1978 6