Is it a good idea to encourage ALL employees to trade in these markets? Should insiders and/or highly uninformed people be allowed to trade? Do they help or hurt the market?
It appears that the purpose of encouraging all employees to prediction trade is to increase the accuracy of the markets. However, Google project insiders have stated that the market is already quite accurate, and often confirms their own, informed beliefs. Based on that, I'm not sure what value the market has, information wise. Therefore, it may be a waste of time to encourage employees to trade in a prediction market - productivity would decline for no reason.
I don't think that the market should be restricted to certain people (if that's possible). The market is already subject to manipulation based on activity monitors - so it's likely that highly informed and uninformed activity will be lost in the shuffle.
Thursday, April 23, 2009
Tuesday, April 14, 2009
Threadless
In what other industries or areas would Threadless’ community-driven product development model work well? And not so well?
This model works well for T-shirt production becuase it provides high creative value with a low production cost. The low production cost is due mostly to the static nature of the production process - a fixed amount of shirts/hoodies etc. are produced during every production cycle. This model would work well in other areas where creativity is valued and the product design is simple.
However, this model would not transfer well to complex products, such as shoes or handbags, where the customized production process would be too expensive.
This model works well for T-shirt production becuase it provides high creative value with a low production cost. The low production cost is due mostly to the static nature of the production process - a fixed amount of shirts/hoodies etc. are produced during every production cycle. This model would work well in other areas where creativity is valued and the product design is simple.
However, this model would not transfer well to complex products, such as shoes or handbags, where the customized production process would be too expensive.
Thursday, March 5, 2009
Brightcove
What are the strengths and weaknesses of Brightcove’s business model?
Brightcove's strengths are that they offer a professional video solution that is very attractive to blue chip clients.
Brightcove's weakness is that it has become bogged down in catering to its high end clients and has been distracted from its growth strategy of attracting traffic and selling space to advertisers. In the meantime, sites like Youtube have popped up and dramatically changed the competitive landscape.
Additionally, Brightcove does not have a firm competitive advantage - its technology platform can be duplicated. Brightcove must rely on a combination of cutting edge technology and a roster of big name clients to maintain its current revenue stream. Apparently, this concentration of resources has distracted the company from pursuing its long term competitive strategies.
Brightcove's strengths are that they offer a professional video solution that is very attractive to blue chip clients.
Brightcove's weakness is that it has become bogged down in catering to its high end clients and has been distracted from its growth strategy of attracting traffic and selling space to advertisers. In the meantime, sites like Youtube have popped up and dramatically changed the competitive landscape.
Additionally, Brightcove does not have a firm competitive advantage - its technology platform can be duplicated. Brightcove must rely on a combination of cutting edge technology and a roster of big name clients to maintain its current revenue stream. Apparently, this concentration of resources has distracted the company from pursuing its long term competitive strategies.
Thursday, February 26, 2009
DoCoMo / Google
1. Is DoCoMo wise to offer its existing mobile phone rivals access to FeliCa?
Yes. It appears that FeliCa will have an impact on consumers' lifestyles, so the larger the network is, the more useful it will be. Also, if DoCoMo is positioned correctly, it will be more profitable than if it owned exclusive rights to FeliCa.
2. Is search a winner-take-all business?
Yes - Search is a winner take all business. Although both MSN and Yahoo compete with Google, they are fundamentally different. MSN and Yahoo are in the portal business, while Google does not provide editorial content of any kind.
Thursday, February 19, 2009
Electronic Arts in Online Gaming
Since the writing of the Electronic Arts Case the Sony Playstation 3 and the Nintendo Wii have been released and both have online gaming capabilities. What's your assessment of the current online gaming market?
I think that, contrary to my case writeup, Microsoft has gained the advantage over Sony in online gaming. Sony has improved its Xbox Live network to the point where it is the industry standard. The Xbox Live network can be easily accessed by users all over the world and now its competitors (Sony and Nintendo) are playing catch up. It appears that Microsoft was successful in creating a competitive advantage via a robust, subscription based online gaming network.
I think that, contrary to my case writeup, Microsoft has gained the advantage over Sony in online gaming. Sony has improved its Xbox Live network to the point where it is the industry standard. The Xbox Live network can be easily accessed by users all over the world and now its competitors (Sony and Nintendo) are playing catch up. It appears that Microsoft was successful in creating a competitive advantage via a robust, subscription based online gaming network.
Wednesday, February 11, 2009
Netflix VOD
Since the publishing of this case, Netflix has entered the video on demand (VOD) market. What is your analysis of how Netflix has attempted to update their business model with VOD?
I think that VOD is the direction that Netflix has always had in mind. In that respect, they have set themselves up very well to compete effectively with the stand alone VOD providers.
As the issues of content and connectivity are resolved, Netflix will be in an excellent position to capitalize on its current customers and its ratings and recommendations system to seize a majority share of the VOD market.
However, there are technological barriers that will prevent the VOD market from surpassing (or coming close) to the DVD by mail market. Also, I imagine that due to the cost of licensing and possible bandwidth issues, it will take a significant amount of time for VOD to become an independently viable arm of the Netflix company.
I think that VOD is the direction that Netflix has always had in mind. In that respect, they have set themselves up very well to compete effectively with the stand alone VOD providers.
As the issues of content and connectivity are resolved, Netflix will be in an excellent position to capitalize on its current customers and its ratings and recommendations system to seize a majority share of the VOD market.
However, there are technological barriers that will prevent the VOD market from surpassing (or coming close) to the DVD by mail market. Also, I imagine that due to the cost of licensing and possible bandwidth issues, it will take a significant amount of time for VOD to become an independently viable arm of the Netflix company.
Thursday, February 5, 2009
P2P versus iTunes
Who will win the competitive battle between P2P file sharing networks and iTunes over the long run and why?
In the long run P2P file sharing networks will triumph over music retailers such as iTunes. This is because music retailers have been fighting a losing battle against file sharing networks since day one and based on usage data, there is no indication that things will change. Eventually, music retailers will have to embrace the free sharing of media files and develop new methods to profit from the music industry.
If the issue boils down to usage, P2P networks are the clear winner. The question then is, why doesn't the iTunes model work? Is it too expensive? Or too inconvenient? I think the model doesn't work because it relies heavily on copyright enforcement - something that past events have proven to be extremely difficult.
If copyright enforcement is not feasible then music retailers should shift their focus from providing content (mp3 files) to providing an experience. This includes music players and concerts. A shift in focus would not only allow artists to remain profitable, but it would also impact other industries that have traditionally fed off the music industry. Ticketmaster, I'm looking at you!
In the long run P2P file sharing networks will triumph over music retailers such as iTunes. This is because music retailers have been fighting a losing battle against file sharing networks since day one and based on usage data, there is no indication that things will change. Eventually, music retailers will have to embrace the free sharing of media files and develop new methods to profit from the music industry.
If the issue boils down to usage, P2P networks are the clear winner. The question then is, why doesn't the iTunes model work? Is it too expensive? Or too inconvenient? I think the model doesn't work because it relies heavily on copyright enforcement - something that past events have proven to be extremely difficult.
If copyright enforcement is not feasible then music retailers should shift their focus from providing content (mp3 files) to providing an experience. This includes music players and concerts. A shift in focus would not only allow artists to remain profitable, but it would also impact other industries that have traditionally fed off the music industry. Ticketmaster, I'm looking at you!
Tuesday, January 27, 2009
ezboard: Making Customers Pay
1. How should ezboard update their business model to reach their revenue goals?
Ezboard's revenue goal is to double revenues each year - currently the company's positive cash flow is $1 million. In order to double revenue, Ezboard should focus on increasing the number of smaller board subscriptions, increasing the profit margin related to big board subscriptions, and negotiating long term advertising contracts.
Currently board and user subscriptions make up the majority of Ezboard's revenue (57%). There are two types of board subscriptions - big and small. Big boards require more bandwidth to support and ultimately produce a low profit margin. Small boards on the other hand, require less bandwidth to support and provide a higher profit margin. Moving forward, Ezboard should take steps to increase the number of small board subscriptions.
Although big board subscriptions are more resource intensive and not as profitable as small boards, individual big boards are a vital part of Ezboard's user mix. Big boards are valuable because they bring a lot of user traffic to Ezboard, which impacts online advertising revenue. However, Ezboard should capitalize on the fact that big boards are less likely to switch providers (due to the inconvenience and down time) and raise subscription prices to provide a more sustainable profit margin.
Ezboard's advertising revenue is dynamic and ranges from $30,000 to $100,000 per month. This currently makes up 33% of Ezboard's revenue and is expected to increase substantially. To compensate for they cyclical nature of advertising revenue, Ezboard should leverage its constant user traffic to negotiate long term contracts with advertisers.
2. What services should they consider offering with their new version 8.0 software?
When deciding which services to offer with the new version of software, Ezboard should refer to the surveys completed by their registered users. The survey indicated that the user base has expanded from just 18 to 25 year old males to also include 25 to 45 year old females. This change in user base indicates that board content has changed from just gaming and music to a wider variety of topics, such as television, health, and parenting. Although this information is useful for potential advertisers, it does not significantly impact the design of the new version of the software.
The market research also indicates that board users desire a leaner application with only select functions from blogging, photo sharing, and social networking web sites. The addition of select functions would enhance the message board experience without creating a bloated application that is slowed down with under utilized functions. Going forward, Ezboard's new software should appeal to a wide variety of users who want an application that is firmly centered on the message board format.
Friday, January 23, 2009
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