Managing an Online Business

1
Managing an On-line Business

• (Presentation to Executive IT Management Program)
  
• March 24, 2004

2
Outline

• The .com survival guide
• How to survive the .com business
• How to .com your business

3
The .com Survival Guide
4
.com

• In this business you have to move fast . very,
  very fast!

5
.com

• 1 internet year 6 calendar years
• Internet penetration 2.0bn in 10 years
• TV penetration 2.0bn in 30 years
• Email 1 sec
• Express mail 24 hours
• Snail Mail 3 weeks

6
.com

• Technology is a tool, not an end.

7
.com

• Meg Whitman CEO, eBay
• Former GM of Hasbro, Inc. makers of PlaySkool
  and Mr. Potato Head
• Terry Semel CEO, Yahoo!
• Hollywood producer
• Former CEO of Warner Bros.
• Jeff Bezos
• Former hedge fund manager

8
.com

• New economy is about changing how we do things
  but it does not change the basic business
  principles of generating revenues, acquiring
  customers and above all making money!

9
.com

• Yahoo!
• Revenues 1.6bn
• Gross Income 1.2bn (75)
• Net Income 237.0m (14)
• eBay
• Revenues 2.1bn
• Gross Income 1.7bn (80)
• Net Income 444.0m (21)

10
.com

• Customer is King focus on user experience more
  than anything else.

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.com

• Amazon
• Books, CDs, Kitchenware?
• Clean navigation
• One click check-out
• Positive on-line experience
• Starbucks
• Latte, Frapuccino or Americano?
• Nice music
• Nice interiors
• Feel good coffee experience

12
.com

• Focus on your business model especially your
  revenue stream. It has to be predictable.

13
.com

• Yahoo!
• Ads
• Value added services
• Fortune 500s, SMEs
• eBay
• Listing fee
• Transaction fee