eCircle AG Harvard Case Solution & Analysis

eCircle, German Internet communications group of companies was founded in 1999 with a half-dozen staff members and hundreds of thousands of users to a new platform C2C. By early 2001, the co-founders were built eCircle's technology platform, has acquired 4.5 million customers and 90 employees, and raised two rounds of funding. It turned out that the company managed to overcome the initial problems with the running - it was cash, advertising for clients C2C business, and two customers for its new B2B business. However, despite the early success, the co-founders are faced with several challenges. Can they use a relatively successful group C2C communication platform to other profitable businesses, especially B2B offerings? Can they defend themselves from new competition in Europe and the United States? They can manage their cash flow in order to survive the crisis financing market? Closer economic environment and the fight and failures of numerous Internet startups in early 2001 made a growth strategy more difficult to eCircle. His margin for error in these conditions was less than when the company first started. "Hide
by Thomas Hellmann, Christopher S. Flanagan Source: Stanford Graduate School of Business 18 pages. Publication Date: June 4, 2001. Prod. #: E92-PDF-ENG

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