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.

Eastern Training Network

Adapted from Marc Cosentino’s Case In Point, p. 79-81:

Our client is a mid-size training company that serves New England and the Atlantic Seaboard regions. It offers a variety of computer training and consulting services. Eastern just found out that IBM is going to enter in its segment of the market. What does it do?

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.