個案總覽

In early 2002, XM and Sirius were fighting for control of the emerging U.S. market for satellite radio. Each company targeted consumers in automobiles, providing 100 channels of CD-quality audio for a monthly subscription fee of $10-$13. Wall Street analysts predicted that these companies would be profitable by 2005-2006, but investors were increasingly skeptical of ventures that required huge, irrevocable bets on customer acquisition and infrastructure. This case describes the business models of the satellite radio companies, the technology they employed, and their target markets. Poses questions about their pricing strategies, strategic partnerships with auto manufacturers, and whether they should develop interoperable radios that receive either company's signals.

Describes online brokers, companies that use the Internet to help clients identify prospective trading partners and sometimes help their clients complete transactions. First, summarizes the various ways that online brokers create value for their clients. Then analyzes the economic model for online brokers, focusing on their revenue and cost drivers. Building on that analysis, the next section examines the payoff to online brokers from pursuing aggressive growth strategies. Delineates the differences between and advantages of being a broker versus a retailer or a market maker, and explores some of the strategic challenges facing offline brokers as they move their businesses online, e.g., the risk of self-cannibalization and the threat of disintermediation by clients. Explores the value proposition offered by these companies and the economic imperatives they face. Finally, seeks to provide a framework to evaluate whether the adoption of aggressive growth strategies is prudent for online brokers.

Describes online retailers, companies that use the Internet to sell physical goods. Defines online retailers and describes different ways to categorize them. Explores their economic model and value proposition for consumers in comparison with offline retailers. Next, explores the payoff to online retailers from pursuing a "Get Big Fast" strategy--i.e., investing aggressively in customer acquisition and brand building--and identifies best practices that online retailers might employ to maximize their chances of success. Lastly, discusses implications of shopping "bots," and the prospects for disintermediation by retailers by manufacturers.