The document summarizes the photography industry in the virtual world of Second Life. It finds that there are three main strategic groups: agencies that provide various photography services, niche experts who specialize in a specific type of photography, and happy amateurs who take photos as a hobby. The summary focuses on the group of happy amateurs, finding they have low costs, many competitors, and high barriers to expanding their business into a more professional operation.

1. THE
PHOTOGRAPHY INDUSTRY
IN SECOND LIFE
An Outside-In Analysis
Group 11
Fredric Axelsson, 40095
Chris Gruber, 40087
Marcus Holst, 40105
Eleni Miliou, 40099
!

2. METHODOLOGY
Interview with Buffy Rossini, photographer
Websites for model/PR agencies in-world
Statistics provided by Linden Labs

3. MONTHLY UNIQUE USERS WITH REPEAT
LOGINS (THOUSANDS, 2009)
People are more prone to returning
769
770 760 759
752 747 750 750
745
742
732 733
720
695
695
677
670
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Source: https://blogs.secondlife.com/community/features/blog/2010/01/19/2009-end-of-year-second-life-economy-wrap-
up-including-q4-economy-in-detail

4. VALUE OF TOTAL USER-TO-USER
TRANSACTIONS
(MILLIONS OF USD, 2009)
Users exchange more and more money
150 153
160 144
120
120
80
40
0
Q1 Q2 Q3 Q4
2009 2008
Source: https://blogs.secondlife.com/community/features/blog/2010/01/19/2009-end-of-year-second-life-economy-wrap-
up-including-q4-economy-in-detail

5. ”FASHION IS A HIGHLY COMPETITIVE MARKET, THAT’S WHY
WE HAVE ASPIRING MODELS, SUPERMODELS AND ALL
LEVELS OF DESIGNERS AS OUR PRIMARY CLIENTS. THEY’RE
ALL LOOKING FOR AN AGENCY THAT WILL HELP THEM
CREATE A UNIQUE IDENTITY AND SPREAD THE WORD
ABOUT THEIR LATEST NEWS, THEIR FUTURE PROJECTS, ETC.”
Patty Cortes
founder & CEO of GLANCE
International Agency
Source: http://www.slentre.com/slentrepreneur-profile-patty-
cortes-creator-of-glance-international-agency/

6. THE INDUSTRY
• Search results for ”photographer”: 3,580
• Search results for ”photography”: 12,600

7. THREE STRATEGIC GROUPS
Agencies
• Provide many Niched
Happy different services experts
Amateurs
• Modeling school, • Specialize in one
• Do it as a hobby headshots, styling, specific type of
agent for models photography
• Mostly in it for the
fun of it as well as • Create events,
for making a name • Weddings,
doing PR and couples, fashion
for themselves advertisment for
companies

8. OUR CHOSEN GROUP:
THE HAPPY AMATEURS

9. POWER OF SUPPLIERS: LOW
• Almost nothing needed to run operations; primary concern is
to find a realtor
• Risk minimized if property is on mainland
• Several suppliers of equipment

10. POWER OF BUYERS: HIGH
• Many photographers available
• No switching or search costs
• Price sensitive, suspicious buyers

11. THREAT OF SUBSTITUTES: HIGH
• Substitutes here defined as DIY photos and styling
• Many how-to guides available

12. BARRIERS TO ENTRY: LOW
• Studios can be set up cheaply, or are not even needed
• Many how-to guides available
• However, reputation plays a part

13. RIVALRY: HIGH
• Many actors, due to low entry and maintenance costs
• There are profits to be made

14. MOBILITY BARRIERS FOR
BUFFY
• Will need to spend more time dedicated to her business
• Willneed to work hard for referrals and good reputation, as well
as spend money on marketing
• Will
need to hire people and get scripts in order to be a
competitive agency, as well as handling all administration that
comes with it
• Willneed to develop or purchase specific scripts in order to be a
niche expert

15. FUTURE OUTLOOK FOR
BUFFY
• As mobility barriers are high, expanding into an agency will be hard
• Niche expert slightly more accessible, but still hard to accomplish
• Forming price collaborations or other alliances with other amateurs is not
possible, since there are practically no barriers to entry
• If an amateur wants to move to another strategic group, we suggest getting a
job at an agency, as it will develop skills and allow for network building and
increased reputation.
• Learn the ropes, then start your own agency

16. THANK YOU!