This note describes the emerging on-demand economy, also referred to as the sharing economy. The note highlights several companies including Uber and Airbnb that exemplify this new mode of competition, a model that threatens to disrupt traditional firms. Uber provides ride services much like a traditional taxi company, but it owns no cars and employs no drivers, and instead matches independent car owners with customers looking for rides. Airbnb provides a lodging service, but owns no hotels, and instead matches home owners with extra rooms with customers looking for a place to stay. The note allows students to explore what impact such companies might have on traditional business models, what impact they might have on labor and how people work, and whether existing regulations aimed at traditional business models are adequate for the new model.

Wayfair, Inc. was made up of five home goods, furniture, and décor e-commerce brands. Wayfair.com, the main brand, which was responsible for the majority of sales, targeted the mass middle home goods market. AllModern, DwellStudio, Joss & Main, and Birch Lane were niche sites focused on more specialized curated design esthetics. Determining the 2014 advertising budget for Wayfair.com is the big question in the case. Two ad budget decisions need to be made. The first decision is in regard to the amount of money to be allocated for advertising in 2014. The second decision concerns how to allocate this budget. How much should go to TV ads? How should the remainder be allocated within the digital media options?

Best Buy is a consumer electronics retailer with nearly 2,000 stores worldwide. In 2012, the rising popularity of price-matching apps for mobile phones made price differences between retailers transparent, online and offline. Shoppers' desire to test electronics first-hand before purchase drove them to use Best Buy stores as "showrooms" to see new products and then search for better deals on their smartphones. This case examines how brick-and-mortar stores battle showrooming through changes in product assortment, the development of apps, loyalty programs and changes in pricing policy. The case asks whether Best Buy can survive by permanently price-matching their online-only competitors, primarily Amazon, despite having higher costs.

Online storage company Dropbox provided remote-storage over the internet of any type of computer file, along with file sharing, synchronization and backup. Using a freemium pricing strategy whereby a basic service was free-of-charge and a premium service was paid, Dropbox grew into a business with 200 million users. But only an estimated 1.6 to 4.0% of its users provided any revenue to the company. This case examines how Dropbox used freemium pricing to facilitate product adoption and user referrals. A survey is provided of the cloud-storage industry, including an overview of the largest players and their pricing/service models. Further, various freemium-based companies across industries are compared, including user conversion rates and revenue profiles.