Transcript Get Big Fast

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internet
business models
text and cases
iVillage.com
Kristin Belanger
© 2005 UMFK.
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Overview
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Introduction
History
Management Structure
Challenges
Stakeholders
Get Big Fast!
Success? Failure?
© 2005 UMFK.
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History
• Began in 1995
• Publishing and Periodical Industry
• Different properties including:
– Women.com, gURL.com, Astrology.com,
Substance.com, Promotions.com,
Healthology.com, Gardenweb.com
• Ranked 39th in Digital Media Properties
© 2005 UMFK.
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Management Structure
• Douglas McCormick Chairman & CEO
– Since 2000
• Previous employment
– Lifetime for over 20 years
• Six other Vice Presidents
– In charge of different departments
• Board of Directors
– Responsible for larger decisions, policies, and
principals
© 2005 UMFK.
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Chief Competitors
• Lifetime
• Martha Stewart Living
• Oxygen Media
– All target women from different perspectives
© 2005 UMFK.
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Challenges
• Annual Loss
• Last known positive revenue was in June
2004
• Accumulative deficit of $494.6 million
• Small amount of advertising customers
(some have decided to leave iVillage)
• Extend content
– Can’t because of deal with Hearst Magazines
© 2005 UMFK.
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Value Proposition
• Become apart of a community tailored to
women
• Having a one stop shop for women
including:
– Love, Children, Health, Pregnancy, Gossip,
Astrology, Recipes, etc.
© 2005 UMFK.
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Stakeholders
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Customers
Potential customers
Employees
Board of Directors
Shareholders
Members
© 2005 UMFK.
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GBF?!
• Network Effects
– Low to moderate
– Hard time maintaining customers and having content from signed
up members
• Scales of Economies
– Low
– Strong economies = increased profits
– Have a hard time making any revenue
• Customer Retention
– Low
– Customers are leaving and having a hard time to replace existing
ones
© 2005 UMFK.
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Success or Failure?
• Success. . . For now
– As of now iVillage is holding, but there is no
way to tell how long iVillage will last.
– They need to acquire more customers
– Revise the business plan
– Need more revenue
© 2005 UMFK.
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Questions??
© 2005 UMFK.
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 Do you think that iVillage can be looked at
as an online content provider and a portal?
 Is there another way for iVillage to be able
to get more revenue?
 Do you think that the business plan is
sufficient, and the objectives are clear?
© 2005 UMFK.