ELC 498 Day 19
Agenda November 10 –Rosenbluth International and Biztravel.com –Anup November 14 –Round 3 Grading OVER due 10% penalty in class participation score if not in on time –Wit Capital-Steve –Recap of Online brokers –Intro to Online Market Makers November 17 –Priceline WebHouse -Jeff November 21 –eBricks.com -Donnie November 28 –Sothebys-Kristin –Recap of Market Makers –Intro to Networked Utility Providers
Agenda December 1 –Adobe Systems –Anup –Round 4 Grading due –Recap of Networked Utility Providers –Intro to Application Service Providers December 5 –Everdream -? December 8 –Doubletwist -? –Recap of Application service providers –Student Case studies due December 12 –Student Case study Presentation December 15 –Student Case study Presentation –Final Exam Assigned Final weeks –Final Exam Due
INTERNET BUSINESS MODELS ACCESS PROVIDERS PORTALS CONTENT PROVIDERS RETAILERS OF PHYSICAL GOODS BROKERS –Microsoft Carpoint; DLJdirect; Rosenbluth Travel; Wit Capital MARKET MAKERS
Issues Facing Online Brokers How many sellers should you present? (Quicken: “too many = hassle”; Staples: “best of breed”; WebHouse: “one-at-a-time okay?”; CNET: “offer all, but give preference to those who pay”) Should you accept an equity investment from a major seller? (Carpoint/Ford; WebHouse) Can you be a retailer yourself and not drive away other sellers? (Quicken vs. InsWeb vs. eCoverage; CNET; Carpoint vs. CarsDirect.com) Who’s side are you on? (Carpoint presents only a single quote to consumer)
GBF?? Network effects –More clients >> more trading partners? –Depends on Buyer and Seller Heterogeneity –Idiosyncratic preferences vs. Commoditization Client Exclusivity –Sole representation of a group –Not strong for same brokers Scale economies –Large fixed costs Customer retention –Depends on Brokerage type –Website usability & stickiness GBF for online brokers –??