5:00-6:00 Case discussion: BET.com TODAY’S CLASS 5:00-6:00 Case discussion: BET.com 6:00-7:00 Sponsor Presentations: Shannon Gilcrease, L3 7:00-7:50 Group Meeting

Lessons from Dot-coms (Fortune 10,30,2000) - Internet isn’t as “disruptive” as we thought - If it doesn’t make cents, it doesn’t make sense - Time favors incumbents - Making a market is harder that it looks - There is no such thing as “Internet time” - “Branding” is not a strategy - Investors are not your customers - The Internet still changes everything - Entrepreneurship cannot be systematized - The Internet changes your job - Distinction between Internet/non-Internet firms fading - The real wealth of creation is yet to come

Deadly Mistakes of Wanna-coms (HBR January, 2001) - Sprinkle Internet responsibilities throughout company - Internet committee formed from unrelated areas - Simplest, least-demanding applications first - Partner with most dismissive vendor of your traditions - Do on the Web the same that you do off-line - Internet venture need to meet every corporate standard - Reward each unit for its own performance - Compare performance with traditional competitors - Give new tools, and poor training to your employees - The company, not the customer, is in the driver’s seat

Sustainable Competitive Advantage The strategies on which you compete Production R&D Financial Personnel Marketing Basis of Competition Skills and assets Where you compete Product-market selection Against whom you compete Competitor selection Sustainable Competitive Advantage

THE PRIMARY OBJECTIVES OF BET.COM CASE STUDY WERE: 1) DISCUSS THE CHALLENGES FACED BY MANAGEMENT IN DETERMING TARGET CUSTOMER SEGMENT FOR A NEW DOT-COM ENTERPRISE 2) EXPLORE ORGANIZATIONAL CHALLENGES FACING AN ESTABLISHED COMPANY AND ITS OFFSPRING WHEN IT SPINS OFF A FAST- GROWING START-UP

Homework due next session Read: Chapters 3 Read two articles: “Syndication” and “Self-service Myth” Conceptual Project Description (Report I)