Final Projects Favorites

I really liked the Decks for Days business model.  I began my quest to learn how to snowboard this past 2010-2011 ski season, but as a skier I understand the difficulties both in time and money that it takes to travel with skis or snowboards.  It is easy enough taking your equipment with you on a roadtrip, but I can't imagine the cost it would be for me to travel to Colorado or Utah.  Especially since I like to ski and snowboard.  If I am on a week long ski trip I might want to switch each day or every few days, but to travel with two sets of equipment and the way airlines charge now is obsurd.  Decks for Day solves my problems! I am sure it is cheaper to have the equipment shipped than it is to bring on flights.  I also do not wan't my snowboard to have the "United Breaks Guitar" fate either.  I think this model would also be good for those looking to purchase a new board.  Sometimes you want to try to different brands, but rental companies tend to have extremely warn out or non-brand equipment which makes comparisons for shopping purposes difficult.  One difficulty for Deck for Days would be keeping prices competitive.  Not only are they renting equipment, but also shipping it and for customers to opt for this option there prices need to be lower than rental companies both locally and at ski resorts. 

Attracting More Participants to Google Prediction Markets

Prediction markets are only effective if a lot of people participate.  What are the best ways to encourage more traders and trading within internal company prediction markets?

In Google’s case, awards such as t-shirts and cash prices were given to those who participated and made correct predictions.  I was reading this case and wondered how many employees were skeptical of participating in a program where t-shirt prizes were given and predictions revolved around sporting or political events.  If Google wants to increase their participation rates within their GPM program they need to offer more trading involving Google’s business decisions as well as business related incentives.  With incentives such as an extra day of PTO or the ability to leave two hours early on a Friday as well as involving more Google related predictions employees will feel more comfortable participating during their work hours. 

Executives within Google should participate and then make conversation with employees during breaks or lunch regarding the GPM.  This will encourage both increased interaction and discussion about the GPM as well participation.  Another idea would be the ability to trade Goobles in for paid vacations.  For example, employees who obtain a previously determined amount of Goobles could trade them in for a family vacation in which they could choose from a few different vacation options or packages. 

The Trend towards Crowd Sourcing ...

What are the similarities and differences between a community-driven product development process and a traditional product development process within a firm?

Community-driven product development is different than traditional product development within a firm because community processes lack most of the hierarchical structure and costs that exist within a firm’s development process.  Firms usually pay highly educated professionals to research, solve problems, and develop new products.  Because of the large salaries required for these types of positions and the physical aspect involved with commuting to the job itself, these firms can only hire so many people for such tasks.  Community development on the other hand can be done by just about anyone.  Websites, internet, and other technologies make it extremely simple for mass groups of people to contribute their input and knowledge.  The ease of use and large base of non experts who contribute their innovative ideas allows for inexpensive product development.  While a traditional firm uses standards and a limited number of executives to decide the final outcome, crowd sourcing companies can ask for answers, utilize criticism, and determine favorites from a limitless number of people.  What could be any better than obtaining feedback directly from a company’s customer base?  Of course, most companies involved in community-based development must utilize a set of standards in order to streamline the generated content, but the system is not nearly as bureaucratic as with traditional systems.  As ecommerce continues to grow, I think many companies will see the positive impact crowd sourcing will have, thus driving us to a much more community driven economy.   

Adding Value to LinkedIn

LinkedIn recently hit 100M users. If you were in charge at LinkedIn, what would be your strategic goals for the next several years?  How would you achieve them?

LinkedIn is the number one PNS in the US and Europe for several reasons including the ability for professionals to connect and learn from each other.  Despite the high switching costs involved, LinkedIn needs to continuously develop their features in order to keep active users.  For example they need to:

Further Develop the Job Search Aspect

Since this is a social media site for professionals I believe, LinkedIn should offer their job application free of charge for users.  Why not make this site similar to Monster or other job search engines where consumers can search jobs for free but employers pay a fee to have their open job opportunities listed.  To me it makes sense that the opportunity to advance your career on a professional networking site be free of charge for consumers. 

Further Develop the Recruiting Process

I think it would also benefit LinkedIn to begin marketing to college Juniors and Seniors who are looking for internships or entry level positions.  Although this market may not yet be professionals most of them are starting their careers and beginning to develop their networks in order to eventually become professionals. 

Do not dramatically blend the line between having a professional or social media site

Professionals often face consequences and issues balancing their social lives with their professional lives.  For example, co-workers who go to happy hour together or spend time outside of work together may have trouble keeping the social aspect of their relationship outside of the office.  The same could be true if LinkedIn continues to increase the social portion of their website.  Professionals usually like to keep their personal and professional lives separate which happens to add a large part of the attraction and value to LinkedIn.  I do not believe a social addition to this site will add value to the end user. 

Wikipedia - Can they keep out the Bad?

How do Wikipedia’s processes for creating and modifying articles ever lead to high-quality results? In other words, since anyone can easily edit Wikipedia, how is it that good (and usually accurate) content emerges?

                Had Wikipedia kept its business model from Nupedia the site would not be as prominent and as expansive as it is today.  I say this because people love to post videos, articles, and reviews regarding their knowledge and interests.  One reason may be for bragging rights and the other because I believe people genuinely care to share their knowledge with others.   If Yelp, YouTube, and Wikipedia are not enough examples for you to believe me then remember that we also have sites like Google Maps where users can make reviews and many different blogging sites where users can generate and post their own information. 

                With any user generated information site there will of course be information and content that is added that is either below average, completely wrong, inappropriate, or offensive.  Wikipedia in fact has seen and had to deal with examples of each, but the fact that most people take pride in their research, knowledge, and writing will keep most of the generated information accurate.  The majority of people who take the time to share their information through Wikipedia probably have a passion for the information they are sharing and do not want to jeopardize their reputation or the experience of other users.    This Wikipedian system where users can edit articles allows for articles to become accurate overtime.  Wikipedians usually feel strongly enough about a topic to make changes to an article that is inaccurate or inappropriate if a bad apple justso happened to share misguided information.  Wikipedia’s system of editors, administrators, and bureaucrats acts almost like a checks and balance system which can ensure the stabilization and accuracy of articles.  Although this process of adding, deleting, and editing user generated information may be a slow process, I think overtime the accuracy of articles will prevail.

User Generated Content

In general, how should organizations deal with issues posed by user-generated content and other information spread over social media?    

           I have come to learn that one of the most important forms of advertising is through word of mouth advertising.  People tend to follow recommendations from their friends, family, and those who tend to like similar experiences.  We have already seen several examples in this class of businesses which thrived mostly through word of mouth and other limited marketing techniques.  One great example of this is the Taxi Magic application. 

                Having said that, social media can be a great, inexpensive, medium for advertising and creating awareness for many companies.  However, companies must be aware of the consequences that can also occur.  It is just as easy for consumers to promote their negative feelings and experiences as it is for them to advertise the positive experiences.

 User generated content and other information spread over social media allows for consumer knowledge and experiences to be shared with vast amounts of people, on a much large scale than traditional word of mouth regardless of whether the information is positive or negative.  The case for today’s class is a great example of this.  United lost $180 million dollars as a result of one customer’s unhappiness with the company.  Companies must be aware of the dynamics that has resulted from social media and develop strategies in order to counter balance many of the negative and consequential aspects which can occur. 

United airlines and other companies like Comcast which have suffered detrimental social media encounters can learn from their past mistakes.  And other companies which have not faced the negative impacts should follow suit before they suffer from similar problems like 10% decreases in their stock.  In order to protect themselves, companies today must focus on their customers.  We are in a service based economy and the ultimate goal should be to cater to customers.  Mistakes happen and companies can’t please customers 100% of the time, but when a complaint is made it is now more important than ever for companies to take action and make amends.  As mentioned in both readings for today’s class, many companies are developing search techniques which find complaints and comments made on a number of social media sites which either positively or negatively affect a particular company.  This can be used to their advantage! Companies should used these techniques and reach out to those unhappy consumers before damage is done.  Not only is this a way for companies to make amends with unhappy customers,  it is also a way for them to poll information to see where they need improvements and how they can ultimately provide better services for their customers.  Social media seems like a great way for companies to listen, take ideas, and interact directly with the people they are trying to please.

Is Hulu's Plot Actually Evil?

Hulu’s value proposition is different than traditional broadcast and cable television because they offer many of the same programs that cable television does with added value to the user.  For example, users can stream shows at any given time.  Not only can they watch the shows they love, but they can do so at their convenience.  Hulu also offers streaming from more than one network, which gives users an abundance of variety.  I think it is also important that Hulu not only provides users the flexibility when watching their favorite shows, their services are free of charge.  As of right now users are being offered an added bonus without any additional cost.  If Hulu can maintain their current revenue source the company will have a competitive advantage over TV Everywhere which charges a subscription fee.  With a value proposition like this, It does not seem as if Hulu's plot is all that evil. 

Google, Spreading Itself too Thin?

As businesses today find new and innovative ideas, products, and services in order to differentiate themselves and stay competitive in today’s increasingly dynamic market, some businesses may end up in a tumultuous path of mistakes, low quality products, or even failure.  Such issues arise as companies differentiate beyond their core competencies and ultimately spread themselves too thin.  Can these companies who branch into multiple markets maintain their core competencies and key advantages without hindering the quality of their products in order to stay competitive let alone successful?  While it has been done successfully, as seen with Robert Branson’s Virgin brand, some concerns are presented that Google may be spreading themselves too thin.  Is it possible for Google to “organize the World’s information and make it universally accessible and useful while remaining a competitive threat to nearly every company in the information technology industry” (Google Inc. 2010)? Maybe the company’s biggest threat is itself. 

Google’s largest revenues are driven from its core business of operating as a search engine.  Remaining competitive with other large, successful search engines such as Yahoo! and MSN, while simultaneously evolving the quality of its search technology and search results is a continuous process.  However Google manages to find a way to tackle multiple markets by devoting time, effort, and resources to these non search areas of business, such as their most recent entrance into the mobile phone industry.  With powerful competitors who are constantly searching for ways to capture Google, it may be that Google’s efforts in non search markets can eventually become a distraction from its core business.  In an industry with limited switching costs and the bulk of Google’ revenues allotted from usage within the core business, a decrease in quality within their search engine or an increase in popularity of a competitor’s could drastically impact the company’s financial structure.  

So why is it that Google has entered the development and direct sales phases of the Nexus One mobile phone?  I'm not sure many people have the answer to that! With a large number of Google's efforts and resources catered to this new endeavor, should we prepare ourselves for Google's demise or will Google continue to impress us with its technologies and far reaching capabilities?

Internet Startups and the Key Challenges they Face

"Based on the Taxi Magic presentation and the MusicJuice.net case for next week, what do you think are the key challenges facing Internet startups as compared to brick-and-mortar companies?"

                Both Brick-and-Mortar companies and internet startups each face their own unique challenges characteristic to their type of business and industry.  From the discussion in class regarding Taxi Magic and the case on Music Juice, I believe the key challenges for internet startups to be the level marketing, large numbers of competitors, and the difficulty in building trust between the company and consumers.  While internet startups have several advantages, the vast atmosphere that the internet enables can also create some of these challenges. 

                Because of the limitless geography within the internet, companies must market themselves and advertise to a much larger market.  Although internet companies face low infrastructure and overhead costs, it could be that the marketing costs needed for exposure quickly eat away at the savings generated from other areas of their business.  These geographical characteristics can also increase competition.  Not only in the sense that any internet company can market all over the world but also in the sense that internet companies are a lot easier to copy.  Internet startups must differentiate themselves and create competitive advantages in areas that are not easily mimicked.  An example of this is seen by Zappos.com.  The company realized that anyone can create and internet shoe store so they made their competitive advantages, culture and customer service, in areas not everyone can easily accomplish successfully.  Lastly, one of the reasons why Taxi Magic and Music Juice had a slow start was because of the trust issues involved between internet companies and consumers.  I think this is going to be an increasing problem especially as more phishing and other fraudulent sites are developed. 

Netflix: Best Long Term Strategy

In order to keep up with their three strengths, convenience, value, and selection, Netflix should continue to focus on catering to their long tail customers.  They can do this by increasing their selection of "long tail" videos.  This way they can reap more profit, offer more options, minimize waiting time for movies, and gain more customers.  It is also important that Netflix keep an eye on the VOD market as well as internet streaming options.  It may be beneficial for them to choose a compatible area or customer segment in which to test either of these options.  This may help them forecast their strength if implemented nationally.

For Netflix to stay competitive, I beleive they need to offer online streaming.  People find themselves watching movies more and more on their computers in hotels, on buses, planes, or even on their iphones or ipods.  Technology like this that already exists will make Netflix's online streaming option a popular hit.  They should also look into ways people can stream Netflix to their computer and then from the computer to their TVs without jeopardizing quality.  This will really increase the convenience and value that Netflix gives to their customers.  I have Netflix right now, and sometimes forget to return my movies for a few days and then regret that later when I don't have a new movie to watch.  Online streaming would minimize or demolish this problem.  Another plus is that online streaming will help reduce the cost Netflix has for using the US postal service shipping methods.  I'm sure they have some sort of deal worked out, but postage is only getting more expensive and when shipping as many movies as Netflix does, small price increases in postage could significantly increase their expenses. 

2/8/11 Yelp, Will They Make a Profit?

Yelp has taken a unique position in an effort to diversify itself from its largest competitors.  The company relies and succeeds on its position to be a site where reviewers can post freely and readers can learn about all the local hot spots.  Yelp attracts both reviewers and readers because of the brand’s ability to create a sense of community.  Many of Yelp’s most loyal reviewers were drawn to the site because of the limited constraints placed upon them.  Reviewers want to write about how they feel and what is on their mind to both inform readers and have fun sharing their witty comments.  I believe Yelp’s efforts to turn to a sponsorship program where company’s pay sponsorship fees in order to have access to an account manager caused controversy for a reason.  This idea that company’s can pay to have negative reviews moved around has not only given establishments negative views of Yelp’s purpose, but it could also take away from the sole reason reviewers want to continue posting through Yelp.  I do however believe Yelp can make money from impression or click through based advertising, but the sponsorship system seems to take away from their current positioning. 

I think Yelp’s best option is to solely charge establishments for impression based or click through advertising without the sponsorship system or change the monetization model completely to charge readers for access to Yelp reviews.  Charging readers does present a new challenge for Yelp which will be to retain their reader base despite additional costs.  Yelp will only be able to do this if they are confident that their readers are loyal and will continue to stay loyal despite the added charge.  Before taking action Yelp must study their visitor habits and determine if visitors read reviews infrequently and spontaneously or if they continuously search Yelp for their needs and answers. 

It is inevitable that Yelp be worried about Google hotpot because they are essentially in the same business and are using a friend based approach to finding reviews which is similar to Yelp.  Google however already has a much larger customer based which Yelp has yet to gain.  The international aspect on Google hotpot also poses a challenge for Yelp.  Customers who travel a lot for business or pleasure will choose Google over Yelp since Yelp has not yet expanded internationally.  I also think Google’s addition of recommending places based on a customer’s previous ratings and posts is extremely effective and allows for customers to feel like Google understands or knows their preferences thus creating a more personalized customer experience.  In order to be successful with Google hotpot lurking around, they need to maintain their position as a tightly held community where reviewers have complete freedom to make posts.  Thus I stand by my recommendation that Yelp avoid Sponsorship fees.  

Living Social Post (2/1/11)

It is absolutely unbelievable how the internet and e-businesses have opened every aspect of our lives to restaurants and several other activities in our area that we never knew existed.  E-businesses such as LivingSocial and Groupon open my eyes to something knew located in DC or Northern Virginia almost everyday.  Living Social is now classified as the "fastest growing company in the social buying category".  I am sure most of you know how LivingSocial works, but just in case, everyday they send out a daily deal.  Each deal is highly discounted (usually a 50%  or more discount), once the deal is purchased you will receive a voucher within one day, and the best part is if you decide to share the deal with friends and three of your friends decide to purchase it you will receive your deal for free!  The convenience of this system is icredible, but is made even more convenient with the iphone application.  As a consumer I love LivingSocial because it opens my eyes to many salons, restaurants, cleaning services, sporting businesses and activities, and much more that I never knew existed and for a great prices.  Just when I think to myself, I need to do or try something knew, LivingSocial surprises me with another one of their great deals.  Another positive of this e-business is that retailers benefit in more ways than one.  Retailers do not need to pay in order create a deal through LivingSocial.  They simply need to contact the company who works with them to develop a deal then half of the proceeds from every purchase goes to LivingSocial while the other half goes to the retailer.  Not only does the retailer gain profits from "free marketing" but they also gain consumer awareness. 

One of the most important things LivingSocial has to take into consideration is a retailer's ability to meet the large increase in demand.  Several cases occurred where retailers struggled to handle the demand which resulted from one of the daily deals thus leaving unsatisfied customers.  Not only does this reflect badly on the retailer, but it leaves customers with a salty feeling towards LivingSocial.  It almost reminds me of situations where the messenger of bad news is punished solely because they were the bearer of the news.  An example of this may occur this week with the severe winter storm lurking.  People tend to dislike or get mad at the weather man since he is the one informing them of the bad weather ahead.  LivingSocial is not the one who could not handle the demand, but customers may blame them since they are the ones who introduced the customer to the retailer.  Now LivingSocial makes it a point to ask detailed questions regarding a retailer's ability to meet certain demands.  If the company does not feel as if the retailer can handle the demand resulting from a daily deal they will not complete the deal.  I understand LivingSocial's concern and need to look after their reputation, but it does leave some small businesses looking to expand in a catch 22 situation.