“Zazzle”

DISCUSSION QUESTION 1 So what do you hypothesize? Do you think Kleiner Perkins and Sherpalo Ventures made a wise ratiocination spend $16 million in Zazzle? Three old age from now, do you think that Zazzle bequeath have disappointed or dazzle its investors? Why? Answer: . The VCs apparently think that Zazzles melodic phrase mildew is scaleable, meaning that trades leave quickly grow, and that as more bargains are rotate out oer the same technological infrastructure, loot will rise. They may also feel that Zazzle is a platform for the sale of customized on-demand products, and that t-shirts, stamps, and posters are only if the start. On the con side, its voteless to look that Zazzle will take a crap as overmuch interest as the VCs project. With all collectable respect to prat Doerr, he is the VC who said that Seg way would be the fastest alliance in Ameri keister history to chip in $1 billion in sales (see the What Went Wrong give acquit in Chapter 1). Segway has never gained traction, and may not survive. In addition, although Zazzle says that it has brand technology, its hard to believe that what theyre doing cant be fairly easily copied. Look at the stomach vane site of Café Press, hotshot of Zazzles main competitors. Its hard to see what Zazzle can do that Café Press cant match.

It also seems like Zazzles cut of the revenues generated by the freelance(a) artificers that post material on its site is very generous. An operative travels only a 10 per centum royalty (17 part if the sale is made through a referral). That means that Zazzle keeps 83 to 90 perce nt of the sale. By comparison, although eBay! s fee schedule is complex, in general, it charges $.25 to $80 per inclininging and two to eight percent of the terminal price. That means that compared to eBay, Zazzle keeps approximately 90 percent of the profits of the sellers that list items on its site, while eBay returns more than 90 percent of the profits. It makes one wonder how sustainable Zazzles business model is. at Table 10.1 in the chapter. At the time that Zazzle raised...If you fatality to get a full essay, order it on our website: OrderCustomPaper.com

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