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Chapter 2 Mini Case and exercises

Chapter 2 Mini Case and exercises

Mini Case

The CEO started the meeting with a surprise. “We are selling our products well in the US, but it’s time to expand to Europe. I spoke with the marketing director and she thinks it’s a good move. She recommended that you lead our European e-commerce initiative. You’ve been to Europe before, haven’t you?” Apparently, the CEO remembered your study abroad trip in college.

“Yes. I spent a summer studying marketing in Italy,” you replied. “I also backpacked through Eastern Europe after college and spent my honeymoon in Paris.”

“Great!” replied the CEO. “That’s more European experience than anyone else in the company has. I want you to explore how to upgrade our websites to sell our products over there.”

The CEO stated there were three things that concerned him the most. First, he knew that Amazon had separate websites for various European countries, such as amazon.fr for France, amazon.de for Germany, and amazon.it for Italy. He wanted to know the advantages and disadvantages for following a similar strategy and your recommendations.

Second, he had heard from other executives that privacy expectations were radically different in Europe. He wanted to know how European privacy expectations would impact our marketing efforts. He also wanted to know if there were any other laws the company should concern themselves with. He expressed his thinking that while a lawyer might better address that question, lawyers are expensive. He asked you if there were any easily identifiable issues and to please include them and recommend what the company could do differently to accommodate those expectations.

Third, he wanted to know which country has Internet law and customs most like ours. He figures that would be the obvious place to start, given the other difficulties with selling internationally. He requested a report on his desk by the end of the month with your recommendations.

Questions:

  • 1. Where would you start your research for the report?
  • 2. Where could you find out more information about privacy expectations in Europe?
  • 3. Does it matter what type of business model your company uses? If so, how?

Exercises

  • 1. Review the privacy policies of three different online companies. Compare and contrast their policies.
  • 2. Imagine you are the manager of a photography studio in Wichita, Kansas. Your photographers want to put some of their products in the creative commons but license others with full rights reserved. Develop a plan for deciding which to keep with full copyright protections and which to license in the creative commons.
  • 3. Find an example not mentioned in the text for each type of online revenue model. Prepare a short report describing how they implement that revenue model.
  • 4. Go to Amazon.com, scroll to the bottom of the home page, and explore all the links. Identify every online revenue model that Amazon uses and describe each.
  • 5. Think of a social network you belong to, such as Twitter or Facebook. Explain how your usage of that network demonstrates the concept of network effects.

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