Op4.Com Case Study

2,982 views

Published on

Published in: Business, Education, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,982
On SlideShare
0
From Embeds
0
Number of Embeds
284
Actions
Shares
0
Downloads
26
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide
  • OP4.com had just secured a half a million dollars in private placement financing
  • OP4.com originally considered the content on Bolt.com as “teenage inappropriate” Bolt.com now calls itself “a leading web and wireless platform for 15 to 24 years olds that provides cutting-edge communications tools that enable young adults to interact in a relevant, member-created environment.”
  • Originally bought by Delias, which was recently (within the past few months) was bought out by Alloy.
  • Alloy, Inc. is comprised of several sites: Alloy.com Delias.com CCS.com Danscomp.com CollegeClub.com CollegeXpress.com EStudentLoan.com Privatecolleges.com Also has a media and marketing arm named 360 Youth, which “integrates the assets and experience of the largest and strongest college and teen marketing companies including MarketSource Corporation, CASS Communications, YouthStream Media, Market Place Media and others…”
  • Bought by IGN.com IGN.com has positioned itself as “the Internet’s leading information and entertainment destination for teen and young adult gamers.”
  • Extensive searches on Google.com, Google.ca, Yahoo.com, Yahoo.ca, and the web site of the Toronto Star yielded only one article and one picture
  • Op4.Com Case Study

    1. 1. OP4.com: Our Place 4 Everything Eric Niemiller & Zach Evans
    2. 2. OP4.com – The Beginning <ul><li>Co-founders started the site to have a positive web community and portal for kids </li></ul><ul><li>The site would allow teenagers to: </li></ul><ul><ul><li>Congregate </li></ul></ul><ul><ul><li>Discuss topics in chat rooms </li></ul></ul><ul><ul><li>E-mail </li></ul></ul><ul><ul><li>Submitting articles </li></ul></ul>
    3. 3. OP4.com – The Mission <ul><li>To create and position a web site as premier youth-oriented site, with proprietary content as a cornerstone </li></ul>
    4. 4. OP4.com – The Method <ul><li>The site was to rely on a unique user aggregation model </li></ul><ul><ul><li>One of the founders owned a motivational speaking company that had a reported reach of 10 million North American high school students </li></ul></ul><ul><ul><li>They intended to stand out from the crowd with grassroots, viral marketing </li></ul></ul>
    5. 5. OP4.com – The Challenges <ul><li>Co-founders understood there were several challenges to overcome in designing a web site: </li></ul><ul><ul><li>Page size </li></ul></ul><ul><ul><li>Features </li></ul></ul><ul><ul><li>Attention span of browsers </li></ul></ul>
    6. 6. OP4.com – The Advantages <ul><li>They also understood that a web site offered several advantages: </li></ul><ul><ul><li>Content could be dynamic </li></ul></ul><ul><ul><li>Technically an infinite space </li></ul></ul><ul><ul><li>Accessible worldwide </li></ul></ul><ul><ul><li>Ability to conduct business </li></ul></ul>
    7. 7. Development Research <ul><li>OP4.com had researched anticipated costs of designing the site: </li></ul><ul><ul><li>Sophisticated e-commerce sites could easily exceed Cdn$200,000 (US$150,000) </li></ul></ul><ul><ul><li>Typical costs were Cdn$300-500 (US$225-375) per page </li></ul></ul><ul><ul><li>Cdn$50-150 (US$35-115) per graphic </li></ul></ul><ul><ul><li>Cdn$2,500-5,000+ (US$1,875-3,750+) for database functionality </li></ul></ul><ul><ul><ul><li>Increases significantly with the number of products sold </li></ul></ul></ul>
    8. 8. Types of Web Sites
    9. 9. Brochure Site <ul><li>Purpose: </li></ul><ul><ul><li>Potential customers from around the world can learn about a company. </li></ul></ul><ul><li>Typical Features: </li></ul><ul><ul><li>Some graphics </li></ul></ul><ul><ul><li>Description of the company </li></ul></ul><ul><ul><li>E-mail link or guest book form </li></ul></ul>
    10. 10. E-Commerce Site <ul><li>Purpose: </li></ul><ul><ul><li>Customers from around the world can purchase your products or services via the Internet. </li></ul></ul><ul><li>Typical Features: </li></ul><ul><ul><li>Features of a brochure site plus: </li></ul></ul><ul><ul><li>Customer shopping site </li></ul></ul><ul><ul><li>Credit card processing </li></ul></ul><ul><ul><li>Customer security functions </li></ul></ul>
    11. 11. Marketing Site <ul><li>Purpose: </li></ul><ul><ul><li>You can increase consumer awareness of your company or your brand or services by strategically linking and affiliating your site with related sites. </li></ul></ul><ul><li>Typical Features: </li></ul><ul><ul><li>Features of a brochure site plus: </li></ul></ul><ul><ul><li>Advertising (e.g., banner ad exchange) </li></ul></ul><ul><ul><li>Marketing (e.g., affiliate program) </li></ul></ul>
    12. 12. Community Site <ul><li>Purpose: </li></ul><ul><ul><li>A portal site, you can create an attractive audience to sponsors by driving people from your disparate sites to your central community site. </li></ul></ul><ul><li>Typical Features: </li></ul><ul><ul><li>Features of a brochure site plus: </li></ul></ul><ul><ul><li>Advertising (banners) </li></ul></ul><ul><ul><li>Sponsor site integration </li></ul></ul><ul><ul><li>Features to support community (email, chat, message boards) </li></ul></ul>
    13. 13. Database-driven Site <ul><li>Purpose: </li></ul><ul><ul><li>You can allow your customers to access their account data, search for documents that support your product, or learn more about products or services you sell offline. </li></ul></ul><ul><li>Typical Features: </li></ul><ul><ul><li>Features of a brochure site plus: </li></ul></ul><ul><ul><li>Custom database design </li></ul></ul><ul><ul><li>Search tools </li></ul></ul>
    14. 14. Extranet Site <ul><li>Purpose: </li></ul><ul><ul><li>You can use your web site to share sensitive or confidential information with your customers or suppliers in a secure fashion. </li></ul></ul><ul><li>Typical Features: </li></ul><ul><ul><li>Similar to a database-driven site plus: </li></ul></ul><ul><ul><li>Password-protected access </li></ul></ul><ul><ul><li>Data security functions </li></ul></ul>
    15. 15. A Tale of Two Design Firms
    16. 16. MillenPro Mock-Up <ul><li>Built a landing page </li></ul><ul><li>Developed a logo for OP4.com </li></ul><ul><li>Incorporated a short questionnaire for collecting pre-launch registration data </li></ul><ul><li>Total Cost: Cdn$34,000 (US$25,500) </li></ul>
    17. 17. MillenPro Problems <ul><li>Not sure that they understood their youth-focus </li></ul><ul><li>Disagreement arose over data </li></ul><ul><li>Requests for changes took a couple of days before responses were given </li></ul><ul><li>Management had to go over new requirements an average of three times before project manager got it </li></ul>
    18. 18. BaseSync Profile <ul><li>Considered a Vancouver ‘hot shop’ for innovation </li></ul><ul><li>Swamped with projects </li></ul><ul><ul><li>Had to be convinced to provide a business requirement document </li></ul></ul><ul><ul><li>Cost: Cdn$25,000 (US$18,750) </li></ul></ul><ul><li>Estimated cost site at Cdn$450,000 (US$337,750) </li></ul><ul><ul><li>Future changes estimated to cost Cdn$35,000 (US$26,275) </li></ul></ul>
    19. 19. BaseSync Problems <ul><li>Proposed site price range very high </li></ul><ul><li>Were extremely busy and often turned down projects </li></ul>
    20. 20. OP4.com – The Choice <ul><li>Needed to make a decision fast: </li></ul><ul><ul><li>Competitors were already launched and acquiring thousands of new users on a weekly basis </li></ul></ul><ul><ul><li>Competitors were gaining huge exposure in the business and popular press </li></ul></ul><ul><li>Had to chose which design firm to go with </li></ul>
    21. 21. OP4.com Competitors
    22. 22. Bolt.com “… a leading web and wireless platform for 15 to 24 years olds that provides cutting-edge communications tools that enable young adults to interact in a relevant, member-created environment.”
    23. 23. iTurf.com “… the premier direct marketer to this demographic group” (teenage girls and young women).
    24. 24. Alloy.com “… media, direct marketing and marketing services company targeting Generation Y, the more than 60 million boys and girls in the United States between the ages of 10 and 24.”
    25. 25. Snowball.com “… the Internet’s leading information and entertainment destination for teen and young adult gamers.”
    26. 26. OP4.com SWOT Analysis
    27. 27. OP4.com Strengths <ul><li>Co-founders understood the need to outsource web site development </li></ul>
    28. 28. Project Definitions <ul><li>Successful Projects – The project is completed on time and on budget, with all features and functions as originally specified. </li></ul><ul><li>Challenged Projects – The project is completed and operational, but over-budget, over the time estimate and with fewer features and functions than initially specified. </li></ul><ul><li>Failed Projects – The project is cancelled before completion. </li></ul>
    29. 29. Project Resolution History
    30. 30. Overruns and Deficiencies 26% 239% 214% Small 35% 202% 182% Medium 58% 230% 178% Large Content Deficiencies Time Overruns Cost Overruns Company Size
    31. 31. Success by Project Size
    32. 32. OP4.com Strengths <ul><li>Co-founders understood the need to outsource web site development </li></ul><ul><li>User aggregation model </li></ul><ul><li>Only teenage-focused site with a mission to promote a positive self-perception and outlook </li></ul>
    33. 33. OP4.com Weaknesses <ul><li>COPPA - Children’s Online Privacy Protection Act of 1998 </li></ul>
    34. 34. COPPA 1998 <ul><li>Requires web sites directed at children under the age of 13 to obtain ‘verifiable parental consent’ before collecting personal information online </li></ul><ul><li>Requires these web sites to disclose in a notice: </li></ul><ul><ul><li>Its online information collection and use practices with respect to children </li></ul></ul><ul><ul><li>Provide parents with the opportunity to review the personal information collected online from their children </li></ul></ul>
    35. 35. OP4.com Weaknesses <ul><li>COPPA - Children’s Online Privacy Protection Act of 1998 </li></ul><ul><li>Already behind several competitors </li></ul><ul><li>Advertising-based revenue model </li></ul><ul><li>Lack of e-commerce capabilities </li></ul>
    36. 36. OP4.com Opportunities <ul><li>Take even more advantage of rapid adoption of Internet by teenagers </li></ul><ul><li>Addition of e-commerce capabilities </li></ul><ul><li>Partner with other online content publishers and/or content consumers to share content for a fee </li></ul>
    37. 37. OP4.com Threats <ul><li>Teenagers view of what they like and what is hot changes rapidly </li></ul><ul><li>Better funded American-based companies </li></ul><ul><li>Coming-of-age of IM technologies </li></ul><ul><li>Advertising-based revenues could falter </li></ul>
    38. 38. OP4.com – The Update
    39. 39. OP4.com – The Article <ul><li>OP4.com web site was launched on October 18, 2000 in Toronto </li></ul><ul><ul><li>Launch party was attended by about 150 teens </li></ul></ul><ul><ul><li>Co-founders, in typical Internet-hyped fashion, rode into the film studio riding retro scooters </li></ul></ul>
    40. 40. OP4.com – The Picture Picture caption: “A launch party for OP4.com—a hot new web portal for teens. It went out of business a few weeks later.”
    41. 41. Questions?

    ×