Sothebys.com: Giving the Van Gogh Away

This is a case report on auction house Sotheby’s launch of its online platform, Sothebys.com, based on Harvard Business School’s case, Sothebys.com. You can purchase the original case from HBS here. Download a pdf of this case report here.

ABSTRACT

The current revenue model of Sotheby’s online auction sites does not adequately monetize the value the platforms offer both buyers and sellers. The situation is such that the average lot sold on Sothebys.com is losing money for the firm. To rectify this, Sotheby’s must charge their Associate members for access to the platform, change the premium schedule of online sales to match that of live auctions, and make it a strategic initiative to push lower priced items from the live auctions to online sales to improve the company’s overall profitability.

Prepare for Rush Hours at the Airport

The airport is about to get even more fun.

The Wall Street Journal reported on Thursday that American Airlines would be reverting to an older model of “peak” scheduling in an effort to bump up its revenue. By grouping flights into select high-traffic hours, the airline expects to increase the number of connections available to customers and its chance of filling its planes. Robert Isom, American’s chief operating officer, projected that re-peaking schedules at hubs will add $200 million in revenue a year.

The Hottest Runway of 2014: Wall Street

On November 12^th, Michael Kors Holding Limited joined the S&P 500, replacing NYSE Euronext (4). The company’s spectacular growth following its IPO in December 2011 has proved to be more than a fad. The Kors brand has laid claim to the fast-growing and seemingly paradoxical niche of ‘affordable luxury’ as the global economy recovers from the financial crisis. The U.S. premium handbag and women’s accessories market is currently estimated to be $10.3 billion dollars (1), and in China, Bain & Co. estimates luxury goods sales to reach up to $21 billion this year (2). In the last three years alone, Michael Kors has already captured an estimated 16% of the market (1).

Good Luck Leaving Your Wireless Phone Plan

T-Mobile’s latest push to brand itself as the anti-contract wireless provider is a welcome move in a market where confusing and complex two-year contracts are standard practice. However, concerns such as network coverage and speed, data allowance plans, and phone offerings often prevent customers from switching providers. The Wall Street Journal provided the latest update on the state of the industry in its article Good Luck Leaving Your Wireless Phone Plan.

Cracking the Mysteries of the Male Shopper

Read the article from The Wall Street Journal in its entirety here: Cracking the Mysteries of the Male Shopper. My summary and thoughts are below:

In my four semesters of college co-ed life, I have never seen a single one of my male friends go shopping. I’ve often wondered how they manage: fabrics wear thin, styles shift, seasons change. They remain clothed, so I suppose they must do their shopping on the sly–or online.

Barnes & Noble

The story of Barnes and Noble Inc. (BKS) has entered a dark chapter in recent months upon news that the bookseller will discontinue production of its color Nook tablets, a clear defeat for B&N in the tablet arena. William Lynch announced his resignation as CEO following the release of dismal fourth quarter losses (BKS stock took a 17% tumble that day^[1]).

As an avid reader and professed book lover myself, I am not wholly surprised by reports of B&N’s losses. I cannot recall the last time I made a purchase from Barnes and Noble. For me, the only reason to pay the premium for a book from Barnes and Noble is the extreme–and rare–case that I need a physical copy fast. Now that I have an Amazon Prime membership with free two-day shipping, my visits to B&N have become ever more sparse. In fact, to complete my conversion to Amazon, I bought a Kindle as my personal birthday gift last March. The future for Barnes and Noble is bleak, indeed.

Kroger Acquires Harris Teeter

I read news of Kroger’s acquisition of Harris Teeter in the Wall Street Journal a few days ago. Here’s a summary and my take on the article as a resource for potential cases.