DISCUSSION QUESTION 1
So what do you think? Do you think Kleiner Perkins and Sherpalo Ventures made a wise decision spend $16 million in Zazzle? Three years from now, do you think that Zazzle will have disappointed or dazzle its investors? Why?
Answer:
. The VCs apparently think that Zazzles melodic phrase mildew is scaleable, meaning that sales will quickly grow, and that as more sales are spread 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 image that Zazzle will take a crap as much interest as the VCs project. With all collectable respect to John Doerr, he is the VC who said that Seg way would be the fastest company in American history to chip in $1 billion in sales (see the What Went Wrong give birth in Chapter 1). Segway has never gained traction, and may not survive. In addition, although Zazzle says that it has branded technology, its hard to believe that what theyre doing cant be fairly easily copied. Look at the weather vane site of Café Press, one 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 artist gets only a 10 per centum royalty (17 part if the sale is made through a referral). That means that Zazzle keeps 83 to 90 percent of the sale. By comparison, although eBays fee schedule is complex, in general, it charges $.25 to $80 per listing and two to eight percent of the final 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: Orderessay
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