Electronic

Commerce Strategies
MGMT S5010 (Course #32577) Harvard Summer School Summer 2011 Tentative Syllabus (pending guest speaker assignments)
Instructor: ProfessorDennisGalletta UniversityofPittsburgh Email:galletta@katz.pitt.edu TeachingFellow:JeremyDoran Email:pianomanjd63@gmail.com Whenthiscoursestartedbackin1995,therewastremendousmagicintheair.Peopledreamt aboutmillionsofdollarsthatcouldbecashedinonwildideas.Andsomeindeedearnedthosemillions. Someearnedmillionsonsellingashakyideaonlytoseethebuyerturnaroundandmaketensof millionsonthesameidea.Thecoursehadstandingroomonlycrowdsandlargewaitinglists. Fastforwardto2011.ECommerceisnowtotallyinthemainstream.Youprobablyfindyourself usingtheinternetsomanytimesduringatypicaldaythatyoucannotrememberwhatitwaslikebefore youhadsuchaccess.MyowncomputerseemsemptywhenIcannotconnect.Andtheplacesthatlack connectionsarehappilydwindling.EvenwhenIamvisitingmyrelatives,Icanconnectviamytethered Androidphone.Andasenrollmentsshrankduringtheburstbubbleof2000,ecommercejustkept growing.Manyfirmsperishedbutmanythrived.Successfulweb+brickandmortarfirmsbecame brickandclickfirms. Thecontenthasmaturedinecommercecourses.Backinthemid90's,thosefewofusinthe tinyhandfulofavailableECommercecoursesintheworldspentseveralweeksteachingstudentsabout HTML,JavaScript,andotherlowleveltoolsforbuildingwebpages.Justsixteenyearslater,thelistof technologiesislongerthaneverandchangingconstantly.Powerfulpackagesarenowavailablethat avoidtheneedfordeveloperstoseetheHTMLlanguageveryoften.Onepopularandpowerfulexample isAdobesDreamweaver.Andyoumighthavereceivedaveryeasytousewebdevelopmentpackageas partofMicrosoftOffice(possiblyfreewithyouruniversityplan):InOffice2003and2007,Publisheris included,andbeforethat,FrontPagewasprovided.EvenWord(sinceXP)allowsyoutodevelopweb pagesandsavethemasHTMLdocuments.Therearefewerbarriersthaneverbeforetopublishanyof yourmaterialstotheworld. Thetroubleisthatmanytoolsrequireexpertknowledgeofhowtochangeserveroperating systemsettings(especiallytoopensecuritygatestoonlytherightparties)andlinktodatabases.The technologyhasdevelopedsomuchthatanentireseriesofcoursescan,andmustbetakentodothe buildingofanonlinebusiness.Meanwhile,thephilosophyinthiscourseistwofold:(1)itismore importanttohavethecreativeidea,thegem,thegoldenmomentthatcaneitherprovideorsquandera 1 PreliminaryversionAsofMarch1,2011

 lifetimesworthofincome,ratherthantofocusonthemechanics.(2)Theissuesofcompetitive advantageandsustainabilityofthatadvantagearemoreimportantthanthemechanics. Sixteenyearslater,wherewearenow,therearemanynewbusinessmodelsthatdidnotexist atthebeginning.Thenewtoolsandeaseofproducingcomplicatedapplicationshavepushedthe envelopetosuchanextentthatthosewhoarefamiliarwiththeoldtoolsaresimplyamazed.One exampleisGooglesuseoftheAjaxlanguage,whichallowsyoutoscrollamaparoundwithouthavingto reloadthepageforeachmovementofthemap(asyouveundoubtedlynoticedisstillrequiredinless sophisticatedsites). Thedevelopmentofnewbusinesseshasadmittedlyslowed.Mostoftheeffortisnowaimedat helpinganexistingbusinesslookingatnewwaystoleverageecommerce,ratherthanstartingnew enterprises.Ofcourse,somenewecommercebusinessesarecreated,butnewbusinessesarealso createdinthephysicalbrickandmortarworld,eveninmaturebusinesseslikestores,restaurants,and serviceenterprises. Allinall,thereisgoodnewsandbadnews.Thegoodnewsisthatmuchgood,interesting,and intellectualcontentisnowavailableforstudyingecommerce.Thereareinterestingstrategicmodels andaplethoraofcasesinvolvingthoseinyourdaytodayexperiencelikemusicdownloadingandthose thatyouprobablywillneveruse,suchasBaxtersBusinesstoBusinesssystem. Thebadnewsisthattheareaisstilldevelopingsosomeofyourknowledgewillbetime sensitive.Youwillfindthatnewdevelopmentswillseemtomakesomeofthismaterialobsolete. Fortunately,theapproachwetakeherewillfocusonframeworksthatshouldnotchangeasrapidlyas thetechnology.Ifyoubecomeaccustomedtoapplyingthestrategicframeworkstotheserealsituations, youwillseehownewtechnologiesdonotchangeeverythingallatonce.Therearestilltimelessissuesof competitiveforces,competitiveadvantage,valuechain,andsustainabilitythatwillorganizethe material,andhopefullywillorganizeyourthoughtsaboutthenewtechnologiesformanyyearstocome.

Course Approach
Myapproachinthiscourseistocombinemyownextensiveteachingandresearchmaterials withthatoftheonlysurvivinganduptodatetextbookinthearea,andwitharangeofcasestudies fromHarvardandotheruniversities.Theresultisperhapsaheavyreadingload,butoursixweekformat allowsyoutobecomeimmersedinthematerial.Thetextwillservetosupplementtheclassmaterials, perhapsprovidingdeeperexplanationsofanyitemsthatImightglossover.Forcases,Iwillprovide specificquestionstoavoidyourhavingtoguesswhatImlookingfor,andIwillalternateyourcase requirementsbetweengroupcasesandindividualcases.Finally,thesequenceofthematerialmightbe adjustedasnecessarytoaccommodatetheverylimitedschedulesofourguestspeakers. Theusualclassplanistocoveracaseforaboutanhour,thentocovermaterialthatconcerns thenextcase.Ifwegetbehind,pleasefillinwithreading;theneedtocoverthematerialwillbemodest atbest.Wewillalsofromtimetotimediscussresearchprojectsthathavebeencompleted,aswellas somethatareunderway.

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Textbook
Laudon,KennethC.andCarolGuercioTraver,ECommerce:Business,Technology,Society2011 (7 ed).NewJersey:PearsonEducation(PrenticeHall),ISBN10:0136091210;ISBN13:9780136091219
th

Cases
MostofthecasesareavailableonHarvardPublishingssitebutitwillsaveyousubstantiallytoorder themfromtheHarvardsitethroughthiscourse.Thelinktobuythematadiscountis http://cb.hbsp.harvard.edu/cb/access/9607004. Someofthecasesarequitenew.Harvardcasesareaboutmanagementapproaches,notabout thelatesttrendsordevelopments.Also,theoldercasestendtobethebestsellersmostoften,andnot alloftheneweronesareworthwhile.Thecasesforthiscoursehavebeenchosencarefullytocover particularissuesthattheycoverextremelywell. Intheorderinwhichtheyarecovered,thecasesareasfollows: OnlineGroceries(inyourtext,pp.TBA) LandsEnd(availableatthefollowinglink:(pleaseinformmeifitdisappears) http://www.business.unr.edu/faculty/kuechler/750/landsEnd.pdf. Netflix(Rachleff&Coates),6/11/08:#9E238(BuyfromtheHarvardlinkabove) Paypal(Mendelson),9/01:#EC7(freefromtheauthor,availableonthissite) eBay(A)TheCustomerMarketplace(Frei&RodriguezFarrar),9/15/05:#602071(Buyfrom theHarvardlinkabove) Pandora:RoyaltiesKilltheRadioStar?(RobertPozen&AlexRosenfeld),Rev.Oct.2,2009;#9 310026(BuyfromtheHarvardlinkabove) Amazon.com:ExploitingtheValueofDigitalBusinessInfrastructure(Applegate&Collura), 9/5/2000:#9800330(BuyfromtheHarvardlinkabove) Google,Inc.(BenjaminEdelman,ThomasEisenmann),Rev.Dec.14,2010:#9910036(Buy fromtheHarvardLinkabove) iPremiereCo.(A)DenialofServiceAttack:GraphicNovelversion(Austin,Leibrock,&Murray) 6/25/09:#9609092(BuyfromtheHarvardlinkabove) Threadless:TheBusinessofCommunity(Lakhani&Kanji),6/30/08:#608707(Buyfromthe Harvardlinkabove)itisaCDROMsoitmustbemailedphysically.

Administrative Matters
Harvardhasawelldefinedprocessformanyadministrativematters.Therearespecific proceduresforstudentswithdisabilities(pleasecontactAcademicServicesat6174950977or disabilities@dcemail.harvard.edu),religiousconflicts,andmakeups(wecantdoit).Also,taking attendanceisrequiredofmeduringtheearlyclassestoallowwaitlistedstudentstotaketheplaceof nonattendingregisteredstudents.Giventhatyouaretakingthecourseforgraduatecreditandhave obviouslysurvivedanundergraduateprogram,sufficeittosaythatyoursubmittedworkmustbeyours andyoursaloneunlesstheassignmentisclearlylabeledtobefromyourgroup.Asyouknowbynow, 3 PreliminaryversionAsofMarch1,2011

 thereareseverepenaltiesforacademicdishonesty,whichincludescopyingnearlyanyamountoftext fromawebsitewithoutquotationmarksandattributionandanyamountofcopyingfromothers.Ifyou citeasource,simplyusequotationmarksaroundthesectionyouarequotingandtheninsertanauthor nameandyearinparentheses,aswellasalistofcompletereferences.Ifyoudothis,astheonly modestlyfunnyjokegoes,cheatingbecomesresearch.Becauseyouareallheldcloselytoit,you shouldbefamiliarwiththeacademicpolicyexplainedinhttp://www.summer.harvard.edu/2010/policy, andinparticular,thepartsapplyingtodishonesty. GenerallyinanalyzingmycasesIdonotexpectyourwritingtobedramaticorartistic.Soyou candispensewiththeItwasadarkandstormynightbeginningsorcleverplotdevelopment.However, thebulletsorsentencesyouhandinshouldbeclear.Soifwritingisanissue,oryoujustwantsomehelp, thewritingcenterislocatedincyberspaceathttp://isites.harvard.edu/icb/icb.do?keyword=k33202. Ifyouneedtogetaholdofme,emailisbest.WhileinBoston,Iwillpromisequickreplies(within afewhours).Often,butnotalways,Iwillreplywithin5minutes.Note:PleasebepatientwhileIamat dinnerorvisitingfriendsinBoston.Iwillconductofficehoursonshortnotice(adayorless).However, studentsseldomneedextensivehelpduetothenontechnicalnatureofthismaterial.Iamaveraging onlyonerequestperyearforofficetime,sopleasefeelfreetocontactmetomeet!

Grading
Sixmainvehicleswillbeusedforgrading,shownbelow. 1. 2. 3. 4. 5. 6. Fiveindividualcases(6pointseach)...........................................................................30 Fivegroupcases(3pointseach).................................................................................15 Finalproject................................................................................................................17 Failurespresentation...............................................................................................8 Quizzes(4@5pointseach)........................................................................................20 Class,groupparticipation(qualityplusquantity)(peerevaluationsincluded)..........10 Total............................................................................................................................100

Iusethe7pointgradingscale,where93100isanA,8592isaB,etc.Ifthegradesarelow,Iwill curveupwards.TheUniversityrulesprecludestudentsfromhandinginextraworkorresubmissionsto improveassignedgrades.Gradechangesareonlypermittedifthereisaclearlydocumentedclericalor computationalerror(2009SummerSchoolFacultyHandbook,p.32).Further,whilestudentsmayask forexplanationsabouttheirgradesandtoreviewtheirpapers,studentharassmentoffaculty(repeated calls,pleas,orcomplaints)isnottoleratedbyHarvard.

A QuasiPaperless Course
Istrivetomakethiscourseaspaperlessaspossible.Ofcourse,havingatextbookviolatesthat policyrightaway.However,ifyourecycleorresellyourtextattheend,itwillgetclosertothatgoal. Further,thecasesandreadingscanallbedownloadedand,hopefully,comfortablyreadfrom yourscreen.Istrivetoneverhandoutanypaper.GiventhattherearelimitationsintheHarvardcase

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 downloads(onlyreadableonyourcurrentcomputer),youmightwanttoprintthemifyouwishtokeep themforever.

Final Project
Thegoalofthefinal(group)projectistointegratethematerialinthiscourseintoan entrepreneurialendeavorofsomekind.Eachgroupshoulddeveloponeofthefollowing: 1. CreateanddevelopanideaforanewInternetbasedbusiness 2. CreateanddevelopanideaforanewInternetrelatedhardwareorsoftwareproduct 3. CreateanddevelopanideaforanewInternetbasedopportunityforanexistingbusiness TheplanshouldbecreatedasaPowerPointpresentation,notawrittendocument,andshould containthefollowingelements.Coverthisina15to20minutepresentationandthepartsyoudo notplantocoverduetotimeconstraintsshouldbeplacedinappendices.Timewillbecalled abruptlyat20minutesandthenextgroupwillneedtobegin.MakeuseofChapter9inthetextbook togetaprettyusefulglimpseofvariousindustries.Ifyouhavechosenoption3above,pleaseonly presentincrementalcosts. 1. Context(2points): a. Ifyouarefocusingonanexistingbusiness,describeitinenoughdetailforusto understandthecontext. b. Whetheritisanexistingbusinessoranewbusinessorproduct,describetheproblem youintendtosolveforcustomersortradingpartners. 2. TheIdea(3points) a. Describeyouridea b. Describethetechnologicalsolution.Ifawebsite,amockupofthesitewouldbe helpful.Justdrawitandinserttextboxeswithlinks,buttons,titles,etc.Insertphotos wheredesired.Justletusknowwhatyourethinkingaboutasvividlyandquicklyas possible. 3. TheCompetitiveEnvironment(5points) a. Provideanoverviewoftheindustrythatisrepresentedmostcloselyorrelatedmost stronglytoyourinnovation b. Describethecustomerbase:Howlargeisthemarket?Describethemarket(i.e.,what arethecustomerslike?). c. DescribethatindustrywithrespecttoPortersfivecompetitiveforces. d. Whichofthethreecompetitivestrategiesareintended?(cost,differentiation,focus) 4. Marketingplan(3points) a. Wherewillyouadvertise? b. Howmuchwillitcost? 5. Thebusinessmodelandfinances(5points) a. Howwillyoumonetizeyourefforts?Whatisyourpricing? b. Projectthepotentialrevenuesand/orcostreductionsfor5years

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 c. Projectyourlikelycostsfor5years.Makeupaspreadsheetthatcombinesthe marketingcostsfromabovewithsalaries,productcosts,andtherestofthelikelycosts for5years.Ifyouhaveproblemstryingtoestimatethetechnologies,useanyofthe followingthatyoufinduseful.Yourownestimatescanoverrideanyofthesenumbersof mine(forexample,ifyouhavevolunteerdevelopersorwillpayonlyinstockoptionsor something). i. Outsourceat$.75pertransaction,OR ii. Startwithtwoserversplusanadditionalserverforevery500transactionsaday. Eachservercanbeestimatedat$5,000,overhead(operatingsystem,database server,labor,space,power,etc.)at$1,000perserverperyear.Addlaborofa fulltimepersonat$50,000thefirstyearthen$120,000annuallyafterthat,plus anotherfulltimepersonat$120,000annuallyforeveryfiveservers. 6. SustainingtheCompetitiveAdvantage(4points) a. Reviewthebarriersyouintendtoconstruct(fromthesustainabilityframework). b. Pointoutcriticalsuccessfactorsforthisendeavor c. Pointoutthelikelyrisksinlightof6aand6b.

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Tentative Course Outline (pending guest speaker scheduling)

1 June28 Introduction GroupFormation StrategicModels OnlineGroceriesminicaseanalysisdue(individual)(pp. 7679) Groupadjustments/reformation Technologiesofecommerce LandsEndcaseanalysisdue(group) OnlineContentandMedia Netflixcaseanalysisdue(individual) Onlinepaymentsystems Quiz1 OnlineSecurity(part1) PayPal(Stanford)caseanalysisdue(group) OnlineSecurity(part2) Ebay(A)caseanalysisdue(individual) OnlineSecurity(conclusion) Quiz2 Web2.0 Pandoracaseanalysisdue(group) Web2.0 WebStartupFailuresassessmentgrouppresentations Quiz3 Onlineretailing Amazoncaseanalysisdue(group) BtoBECommerce Softwareinthecloud Google(910036)caseanalysisdue(individual) Quiz4 Marketing Ethical,Social,PoliticalIssues iPremiere(A)caseanalysisdue(group) Crowdsourcing TheLongTail Marketingcommunications Threadlesscaseanalysisdue(individual) Designingandbuildinganecommercewebsite FinalPresentations Chaps12 Galletta(2009)1 Chap3

June30

3 4

July5 July7

Chap10 Chap5 Wingfield2

5 6

July12 July14

Chap5 Chap5,11

7 8

July19 July21

Chap11 Loiacono7 Chap9 Chap12 Chap6,8 Cummings4and Kay5articles Chap7 Elberse3 Bonabeau6 Chap4

9 10

July26 July28

11

Aug2

12

Aug4

Aug9 Note:Allcaseanalysesareduebytheminuteclassbegins.Foreach5minutesorfractionthereof,1 pointisdeducteduntilthescorebecomeszero(thisoccursinlessthanahalfhour). 7 PreliminaryversionAsofMarch1,2011

 Other Readings 1. Galletta,DennisThinkingStrategicallyaboutECommercetoAchieveCompetitiveAdvantage, Keynotepresentationforthe17thConferenceonEDIandECommerce,Rachna,Poland,June 2009.Availableathttp://www.pitt.edu/~galletta/research/GallettaKeynote.pdf 2. Wingfield,NickNetflixBossPlotsLifeaftertheDVD,WallStreetJournal,June23,2009,Vol. 253,No.145,pp.A1A12.(Seedetailedhandoutforretrievingthisarticle) 3. Elberse,Anita,ShouldyouInvestintheLongTail?HarvardBusinessReview,JulyAug2008. (Seedetailedhandoutforretrievingthisarticle) 4. Cummings,Joanne,HowSOAcouldchangethewayyoubuyelectricity,NetworkWorld, October22,2007.Availableathttp://www.networkworld.com/supp/2007/ndc6/102207pnnl ibmsoacasestudy.html 5. Kay,Russell,Quickstudy:CloudComputing,Computerworld,August4,2008.Availableat http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=321699 6. Bonabue,Eric,Decisions2.0:ThePowerofCollectiveIntelligence,SloanManagementReview, vol.50,no.2,pp.4552.Libraryinstructionswillbeprovidedlater. 7. Loiacono,Eleanor,WebAccessibilityandCorporateAmerica,CommunicationsoftheACM, Vol.47,no.12,pp.8387.(Seedetailedhandoutforretrievingthisarticle)

Web Startup Failures Assessment

Awebsitenamed"TechCrunch"hastakenoverfromthebookF'dCompaniesandhas fortunatelydonesowithoutasmuchprofanity(exceptintheblogpostings)asintheinfamousbook. Seethesiteathttp://www.techcrunch.com/tag/deadpool/.Whileprofane,thebookwasavery quickandoftenhilariousread.Itisamazingtoseewherepeopleinvestedmillionsofdollars, especiallyinretrospect.Youcanalsousethebookasasourceifyoudlike. Yourgroupsassignmentistopickoneofthefirmsandbecomean"expert"aboutit.Youwill havetimeinclassonorafterJune30tomakeyourchoice.Notwogroupsshouldpickthesame firm.Pleasedonotemailyourchoices. Trytobeascompleteaspossibleandcheckoutsomeoftheblogentriesandarticleswritten aboutthefirm.Thendevelopa10minutepresentationaboutit.About67slidesmightbeidealbut youarenotheldtoaspecificnumber.Makeapresentationtotheclassthatexplainsthefollowing: 1. Concept(companyname,whattheytriedtoprovide)(anyscreenshotsyoucandigupof logo/website/etc.wouldbehelpful) 2. Businessmodel(howtheytriedtomakemoney) 3. Whydiditnotwork?Bringoutissuessuchasfinancial,market,staffing,etc.,as comprehensivelyasyoucan. 4. Whatarethechanges(atminimum)thatyoubelievewouldhavebeennecessarytomakeit survive? Nopapertype(narrative)submissionsarenecessary;justsubmitthePowerPointdecks.Makeit fun! 8 PreliminaryversionAsofMarch1,2011

Case Questions
ONLINEGROCERIES(INDIVIDUAL): 1. DescribebrieflytheextenttowhichFreshdirectandWebvaneachaddressed(ordidnot address)eachofPortersthreegenericcompetitivestrategies.Use1to3stars(weaktostrong) andthenbrieflystatewhyyoubelievethatway.Bespecificenough;dontjustsayservice;itis meaningless.Itwouldbebettertosaygreatcustomerservice,andbetteryettosaygreat customerservicebecauseofproprietarytechnology. 2. EvaluateeachofPortersfivecompetitiveforcesonthisindustrybylabelingeachasstrong mediumorweak.Provideashortexplanationofwhyyoureachedthisconclusion.Inall futurecases,whenaskedaboutthefivecompetitiveforces,usePortersframeworkinthisway. 3. DothesameforPiccoli,Feeny,andIvessustainabilitybarriersbylabelingeachashigh mediumorlowforFreshDirect.Provideashortexplanationofwhyyoureachedthis conclusion.Inallfuturecases,whenaskedaboutsustainability,alwaysusePiccolietal.s frameworkinthisway. 4. WhatyouthinkFreshdirectshoulddotoensureitssurvival?Providethreepiecesofadvice basedonthecompetitiveforcesandsustainabilitybarriers. LANDSEND(GROUP) Evenifeachgroupmemberfocusesonansweringoneparticularquestion,putitalltogetherandsubmit itasonedocument. 1. Beforereadingthecase,determinehowmucheachofyourfellowgroupmemberswouldexpect (remember,beforereadingthecase!)customtailoredclothingtocost,asapercentofthecost ofmassproducedreadytowearclothing.Provideatablethatshowshowmuchmoreyour groupmemberswouldeachpayforcustomtailoredclothingandthenprovidearoughaverage forthegroup. 2. Estimatetheimpactofcustomtailoringonthefollowingcostfactors:equipment,labor, inventory,shipping,andadvertising.Use+++forahugeincrease,++foralargeincrease,and+ foraminorincrease.Useforahugedecrease,foralargedecrease,andforasmall decrease.Use0fornochange.Howdoesthiscostperspectivecomparetotheoverall expectationthatyourgroupderivedin#1?Forexample,ifyourgroupdeterminesthatoverall thereisalargeincreaseincost,isyourexpectationin#1consistentwiththat(alargeincreasein price)? 3. Presentastrongargument(withsupport)thattheLands'Endprogramhassustainable competitiveadvantage(usingthesustainabilityframeworkpresentedinclass. 4. Ontheotherhand,presentastrongargumentthattheLands'Endprogramcanbecopiedeasily byacompetitor. 5. WhatadvicewouldyouprovidetoLandsEnd(a)atthetimethecustomtailoredprogramwas created?(b)attheendofthecase?(c)rightnow?YoumightknowthatLandsEnddiscontinued thisprogramforaboutayear,andnowhasresurrectedit.Takealookattheirwebsiteandsee howtheyarenowpromotingtailoredclothing.Hint:Seeifyoucanfindit! 9 PreliminaryversionAsofMarch1,2011

 NETFLIX(INDIVIDUAL) 1. EvaluatethefivecompetitiveforcesforNetflixasyoudidintheLandsEndcase.Whatarethe primaryforcesagainstNetflix?Whatforcesworkinitsfavor? 2. ThecasedescribescompetitiveadvantageenjoyedbyNetflix.Isthatadvantagesustainable? 3. Basedonyouranalysisofsustainability,whatdoyouthinkisthelikelihoodNetflix(initscurrent form)willanothersurvive5years?20years?Explaineachanswer. PAYPAL(GROUP) 1. Inyourgroup,deriveacountofhowmanyhaveusedPaypal,withwhatfrequency,andalso disclosethelargesttransactionoftheentiregroup(totheextenttheindividualsarewillingto disclose). 2. ReviewPaypalsresponsestothefivecompetitiveforcesintheindustry,asyoudefinethe industry.UsethesameapproachasyoudidintheLandsEndcase. 3. EvaluatePaypalfromthestandpointofthesustainabilityframework,asyoudidwithLandsEnd. 4. ThecaseprovidesacomparisonofPaypalwithafewcompetitors.Bynowyoumightalready knowthatthecompetitorshavevirtuallybeenwipedout.Revieweachcompetitoranddescribe brieflywhyyouthinktheymighthavedisappeared. 5. VisitPaypal'ssuckssite(http://www.paypalsucks.com/)anddeterminewhatyoubelieveare trueissuesthatareofconcern. EBAY(INDIVIDUAL) 1. WhatservicedoesEBayprovide?Whatistheroleofcustomersinprovidingthisservice?Think carefullyaboutthesequestions;theyaretheessenceofEBaysexistenceandprocedures. 2. HowisEBay'scompetitiveadvantagesustainedoverotherauctions?Whatdoyouthinkarethe biggestthreatstoEBay? 3. Goingforward,shouldEBaybeconcernedwithgrowingcorporateinvolvement?BuyitNow items? PANDORA(GROUP) 1. ProvideatablethatsummarizeswhoinyourgroupsubscribestoPandora,whattypeof subscriptiontheyhave,andapproximatelyhowmanyhoursamonththeylisten. 2. DescribetherevenuemodelusedbyPandora.Evaluatethatmodel. 3. DescribethemajorcoststructuresPandorafaces.Evaluatetheprospectsforreducingcosts substantially. 4. ProvidealistofindustryforcesagainstPandora,likeyoudidforLandsEnd.Presentan argumentthatPandoraeitherhasordoesnothavecompetitiveadvantage. 5. EvaluatethesustainabilityofwhateveramountofPandorascompetitiveadvantageasyou judgedittobeabove,likeyoudidforLandsEnd.

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 AMAZON(GROUP) 1. VisitthewebsitesofAmazon.com(www.amazon.com),Barnes&Noble.com(www.bn.com), Borders.com(www.borders.com),Walmart.com(www.walmart.com)andKmart (www.bluelight.com).Comparetheproduct/serviceofferingsandonlinecustomerexperience availableoneachsite.Whataretwoimportantstrengths/weaknessesofeachsite? 2. HowhavelongtailconceptsaffectedAmazonsgrowthandperformance? 3. EvaluateAmazonsresponsestothefivecompetitiveforcesintheretailindustryasbefore. 4. EvaluatethesustainabilityofAmazonscompetitiveadvantageasofthedateofthecaseas before. 5. WhataresomenewkeychallengesforAmazon(fromcasematerial,morerecentdevelopments, andyourownknowledgeandexperience)?Supportyourassertionsasbestyoucan. GOOGLE(INDIVIDUAL) 1. WhatwerethekeyfactorsbehindGooglesearlysuccess? 2. Doyouexpectthesearchbusinesstobecomemoreconcentrated(i.e.,dominatedbyfewer firms)?Issearchawinnertakeallbusiness? 3. Inadditiontoenhancingitscoresearchbusinesses,shouldGooglealsobranchoutintonew arenas?Whichofthefollowingwouldyourecommend:1)buildingafullfledgedportallike Yahoos;2)targetingMicrosoftsdesktopsoftwarehegemony;and/or3)becomingane commerceintermediarylikeEBay?Why? IP REMIERE(G ROUP ) 1. WhatsignificanterrorsdidiPremieremakethatledtoitstroubles? 2. Provideargumentstosupportadecisiontodonothingandcontinuebusinessasusual. 3. Provideargumentstodisclosetocustomersthepotentialforabreach. 4. Whatcourseofactionwouldyourecommend?Didyousettleon#2or#3?Ordidyousettleon somethinginbetween?Supportyourarguments. 5. Whetherornotyourecommenddisclosureofsomekindtocustomers,pleaseadoptthat positionforthisquestiononly.Provideacopyoftheletteryouwouldwritetocustomersandbe preparedtoreaditaloudinclassforustodiscuss. THREADLESS(INDIVIDUAL) 1. Whatmotivatescommunitymemberstoparticipate?WhatisThreadlessofferingtoits communitymembers? 2. WhatshouldbedoneinthecaseoftheBigRetailer?Why? 3. Useyourpreviousworkexperienceorthatoffamilymembersorfriendstosuggestoneother situationinwhichthecrowdsourcingapproachmightwork.Howmightyouleverageorexploit thiscrowdsourcingmodelinanotherfirm?Pleasestayawayfromsuggestingsomethingthatis toosimilar,thatis,acrowdssubmissionofproductdesigns.Employingacrowdbased evaluationstepaspartofwhatyousuggestforadifferenttypeofbusinessisabsolutelyfine;it islikelytobeapplicablewidely. 11 PreliminaryversionAsofMarch1,2011