Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Management Information System Expert

Mini Case: Groupon and The Ghost of Startups Past

“You always had an entrepreneurial streak,” you tell yourself with a chuckle as you reflect over a hot cappuccino at your favorite coffee shop. With an undergraduate degree in computer engineering and a soon-to-be-granted Master’s of Management degree, a startup sounds like a perfect way to jump back into the real world. While the global crisis during the last few years has put the squeeze on venture funding, potentially good ideas still get attention. Color.com got $41 million from heavy hit- ters like Sequoia Capital and Bain Capital before it even had launched, and the payoff could be handsome—just a few months back, Groupon had received a buyout offer of $6 billion from Google after a little more than two years in operation. . . and turned it down!!

As you ponder the issue, you reflect on lessons from tech ventures of the past. One that you know quite well was eBay, having been an avid buyer and a successful seller as a teen, and having followed the company over the years. In fact, you remember an interesting article from back in 2004 drawing a paral- lel between eBay, Inc. and Amazon.com. At the time, the two firms were respectively 60th and 66th in Busi- nessWeek’s Top 100 Brands1 and were considered the poster-children of eCommerce, having helped to cre- ate the category. “EBay and Amazon.com, the Inter- net’s top two e-commerce sites, are taking opposite approaches to growth. EBay raised its prices this month for the fourth year in a row, while Amazon renewed its pledge to keep cutting prices even if it means lower profits.”2 You recall Meg Whitman, at the time the eBay chief executive officer, saying: “The eBay mar- ketplace is a powerhouse [....] We continue to enjoyever-bigger, ever-faster cycles of success, fueled by the unlimited opportunity of our huge addressable market.” At the time, eBay was reaching the peak of its financial achievement and growth. You recall in the same article, Amazon’s founder and CEO Jeff Bezos was quoted say- ing: “We will, for years and years and years, consistently give back the gains we get in lower operating costs to our customers in the form of lower prices.” You also recall the numbers quoted in the article: “EBay’s gross profit margin—its revenue minus the cost of sales—was 82 percent. That’s after subtracting the cost of running its Web site, customer support and payment process- ing operations. And eBay’s bottom-line profit stood at 22 percent of its revenue after subtracting all other expenses, including the hefty $172 million that eBay forked over for marketing and sales expenses. Amazon’s gross profit for the same quarter, by contrast, was 22 per- cent, and its bottom-line profit was under 4 percent.”

Was Groupon applying some of eBay’s lessons? Was Color.com? As you ponder your next move, you cannot help but think that replicating eBay’s early and sustained success is predicated on understanding these dynamics.

DISCUSSION problemS:

problem 1: Why have these two companies taken such diametrically opposite approaches?

A) Please start this discussion by describing and comparing the value proposition for ebay and amazon, for ex : brand recognition, ecommerce business model, how does each make $$$? Do you trust each company? Note similarities and differences.

problem 2: Why is Ebay in such a strong position?

A) Digitalization of content?
B) Exponential price-performance improvements?
C) Increasing returns to adoption
D) Standardization and commoditization of IT layers
E) Switching costs and lock -in.

REQUIREMENT:

1) Please include some outside resources to support your posts. Include your references.

2) Each problem about 800 words.

3) Please prepare by your own words, no copy from any resource.

Management Information System, Management Studies

  • Category:- Management Information System
  • Reference No.:- M93043

Have any Question? 


Related Questions in Management Information System

Disaster recovery-as-a-service - 5-6-page research paper

Disaster recovery-as-a-service - 5-6-page research paper that examines DRaaS in depth. The traditional model of disaster recovery is typically based on a combination of local backup schemes, possible rental of hot or col ...

System documentation please respond to the followingray and

System Documentation" Please respond to the following: Ray and Jason have just finished developing the documentation for a system your team recently completed. Ray insists that the documentation should be printed in book ...

Topic profit pollution and deception bp and the oil spill

Topic: Profit Pollution and Deception BP and the Oil Spill BBC Documentary watch the video from the link https://www.youtube.com/watch?v=8zGFvzMMO9w and SUBMIT YOUR PAPER HERE FOR BP DEEPWATER HORIZON required (4 pages) ...

Imagine you work for quality corporation qualityad who has

Imagine you work for Quality Corporation (Quality.ad) who has just recently bought Crescent Inc. (Crescent.ad) in a recent merger. Quality and Crescent have separate offices in St. Louis (Quality HQ), Little Rock, and Au ...

Discussion question 1compare and contrast the functionality

Discussion Question 1 Compare and contrast the functionality and efficiency of the complaint-push model and data-pull model within the process of health care service delivery. Recommend a strategy improving the effective ...

Task 4as part of your course project you are asked to

Task 4 As part of your course project, you are asked to research software for your accounting information system. Conduct research to find two standard packages that you feel may fit your company. For example SAP is a on ...

You are the lead human-computer interaction hci engineer on

You are the lead human-computer interaction (HCI) engineer on a major design project for an organization of your choice. Employees or customers will use this new system and user interface (UI) design to perform data entr ...

Write a 700- to 1050-word 2- to 3-page paper in which you

Write a 700- to 1,050-word (2- to 3-page) paper in which you recommend various components that may be used to measure the value of an IS and IT department to a company. Include the following: Methods used to measure the ...

Searching textual documents please respond to the

"Searching Textual Documents" Please respond to the following: Your company has been hired to design a product that will provide searches of textual documents and database querying. Your design team has not developed a p ...

Social media policysocial media plays a huge role in most

Social Media Policy Social media plays a huge role in most of our lives. It has literally changed the way some organizations do business and has definitely changed the way many people conduct themselves both in and out o ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen