fmg18 grp 9 iac
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Interactive corp - CASE STUDY -
Group - IX
QUESTION 1
What are some of the ways in which Diller's e-commerce online service companies could cooperate to deliver superior value to the customer?
With presence in many diversified businesses try and SYNERGIZE AND INTEGRATE so that management and operations are easier and cheaper
TRAFFIC ECOSYSTEM – Direct visitors to affiliate websites and thus increase the reach of its group websites
With integration offer a COMPLETE SOLUTION rather than piecemeal solutions to part enquiries made
Post adverts of group companies on its own affiliate websites and even give PROMOTIONAL OFFERS AND DISCOUNTS for using multiple websites
QUESTION 2
Would you recommend that IAC sites have a single Web site where users could find all of the services of IAC, similar to a
portal? Why or Why not?
IAC has expanded its business areas since the case was developed
Portals list information and updates from diversified sections in a single place
With present business footprint, IAC will not have to invest a lot
Possible downside would be conflict within group businesses – like between Match.com & Chemistry.com
Would also help them in synergizing the business by understanding user behaviour
Give IAC a stronger brand name and power in market
Hence, our answer is..
QUESTION 3
Based on reading of this chapter on services, what is the common thread that links together most IAC
(InterActiveCorp) Web properties? How do these properties leverage the unique qualities of the Web?
Hence, operating expenses are lower
Most of IAC properties are websites with no or very small inventory and physical presence
Technical synergy and Resource utilization possible
Most companies recognized as having high growth potential
Most businesses act as information exchange or provide medium for different interested parties to meet
Question 4
Compare and contrast the IAC / InterActiveCorp over the past three years with the merger of AOL and Time
Warner. What mistakes did AOL/Time Warner make that InterActiveCorp needs to avoid?
Comparison
AOL-Time Warner merger of two global majors
IAC follows route of acquisition and not merger
During early 2000’s users started moving to broadband internet and AOL suffered
IAC acquires firms with high growth potential and emerging markets
Merger necessitated higher integration between workforce, culture and business
More of a holding company and hence does not need integration between cultures and different workforce
Being merger of equals the bad services stigma of AOL generated affected Time Warner
IAC being much bigger company acquired company’s of smaller size
AOL-Time Warner merger was just before dotcom bubble bust
Most of IAC’s acquisitions were at trough of dotcom bubble bust
Mistakes to avoid
AOL-Time Warner merger was just before dotcom bubble bust
IAC should read market signals carefully to find acquisition targets
Inability to integrate cultures, business and workforce
IAC should carefully evaluate the integration issues before acquisitions
With growing size should avoid conflict within its group companies
Question 5
Suggest some likely ways in which the search engine Ask.com could help create a ‘traffic ecosystem’ among IAC
properties. Do you think users should be notified of this cross marketing?
Show relevant results from its group companies either as sponsored results or searched results
ASK.com would help IAC understand user requirements and thus ability to customize its offering to fulfill those requirements
Offer incentives to users for using multiple IAC services
Offer a complete solution by adding offerings of its different group websites based on the queries in ASK.com
Can also try to raise ASK.com from search platform to portal suggested in earlier question
Offer a user searching for concert tickets suggestions about various travelling and hotel options and offer them incentive for booking it all from IAC group websites
Allow users to choose Gift options comprising of concert tickets, tour packages, etc – all from its group websites
Informing users is legally not compulsory and also very difficult
IAC should definitely not try to hide this ‘cross-marketing’ in any way
Conversely, informing users beforehand would make company appear more open and truthful
Thank YouFor Your time..!!
HOPE PRESENTATION WAS WORTH IT
ASHUtosh kumar jha (91011) Deepinder singh (91016) Divanshu Kapoor (91017) Harsh agrawal (91022) Nishant singh (91039) SAKET KUMAR SINGH (91046)
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