Woot, Inc.

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Woot, Inc. ____________________

• Section 4 (10 am), Group 4MI021 Computers in
  Management, Fall 2008
• Sam HodesSean RobbinsAlex ScullSarah
  WickmanStephanie Wirth

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What is Woot?This is a big hit in the
20-something crowd, and probably a more male
demographic. Our crowd is very Internet-savvy.
They're online 23 hours a day.

• Founded July, 2004
• Unique Business Model sell only one product per
  day
• Strategic positioning differentiation
• CEO Matt Rutledge
• Private Company
• 4M Amazon investment

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ProfitabilityWe anticipate profitability by
2043 by then we should be retired

• 2004 2.3 Million
• 2007 117.4 Million
• 4,988.5 growth since debut
• Inc.com
• Ranked 1 in the Top 100 Retail Companies
• Ranked 25 in the Top 25 Companies by Growth

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Competition"We're happy our concept is
successful, and we expect people to copy us."

• More than 100 one deal a day sites since Woots
  debut
• Woots business model can be copied not
  imperfectly imitable
• First mover advantage
• Have changed the way established online retailers
  do business
• Amazon, Buy.com have added deal of the day
  features

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Shirt.WootDesign has become such a consumable.
Our real success was entering the T-shirt
business with this massive community behind it.
It makes such a difference.

• Vertical Integration
• Print own designs
• Automatic folding and bagging equipment
• The Derby
• Crowdsourcing
• Promotes community and user interaction
• 1st year sold more than 450,000 shirts for 4.5
  million

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Wine.WootWere talking breakthrough stuff here,
connecting wine producers to drunkards er,
connoisseurs in the most efficient and
cost-effective way possible.

• Sells one set of wine a week
• Labrats share honest opinions in forums
• Winemakers make predictions far in advance of
  product release
• Overstock excess inventory
• Partner with Wine Country Connect
• Bridge gap between producer and consumer
• Search for quality products at good value

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Sellout.WootFortunately for us, they also
wheeled up a barrowful of sweet, metaphorical
cash, in the form of access to their gigunda
audience of shoppers whove never met Woot.

• Partnership with Yahoo!
• Exclusive daily deal through Yahoo! Shopping
• Yahoo! shoppers must register on Woot
• Reach new demographics
• Experiment in new product areas
• We can offer Woot members a selection
  unencumbered by the demands of our flagship
  store.

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Woot-Offa short term frenzied mutation of our
product posting procedure.

• Once or twice a month for 24-72 hours
• Generates heavy traffic, excitement among
  customers
• Impulse buying
• Must act quickly
• Sell excess inventory
• Minimize write-offs
• Bag O Crap
• Mystery bag creates excitement, customer
  interest
• Often results in over 1 million in purchases

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Community"The good, the bad and the ugly. We
leave it all up there. If it's pertinent to that
sale, it stays on our page in our community."

• No customer service
• Dependent on user reviews
• More user reviews, more accurate information
• Each sale gets 200-300 comments
• Staying Power
• Interaction between members on forums
• 2005 200,000 registered members
• 2008 1.5 million members

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Scale Advantages"It may not result in huge
sales, but the Internet is important for
launching any new product, and Woot is a
potential jump start.

• More customers
• Economies of Scale
• Buy in Bulk
• Automated machines result in greater efficiency
• Can reach a larger audience
• Bargaining power with suppliers
• Suppliers often ask Woot to sell its products
• Viral Marketing

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Viral MarketingIt's almost like throwing a rock
into a pond. You throw a big enough rock and it
starts to ripple out from the center."

• Little advertising
• Brand built through customer experience
• Woot relies heavily on word-of-mouth marketing
• Free advertising
• Users can share information through social
  networks, blogs
• Potential jump start for products
• Few Google ads

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Competitive Advantage(Review)

• First-Mover Advantage
• Strategic Positioning
• Vertical Integration
• Crowdsourcing
• Yahoo! Partnership
• Little excess inventory
• Staying Power
• Scale Advantages
• Viral Marketing

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Opportunities and ChallengesMy only wish is
that they would list more than one producta day.
Sometimes their stuff sells out in no time."

• Revenue, website traffic dependent on success of
  product
• No selection
• Online outlet mall
• Various companies sell one product per day
• Greater selection
• Expecting record growth in 2008 due to slowing
  economy

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• Questions?