Killing Craigslist: Entrepreneurship in the Online Apartment Rental Market Harvard Case Solution & Analysis

ANALYSIS

The company is in a position which is not allowing the company to grow as the company is new and the market is not so new. The companies that are already in the market are not performing good either as the market for the website holders is not favorable.

Industry competitiveness:

The industry is very competitive as all the suppliers or the website holders and companies are aware of the terms and conditions being offered to the customers so it is a very competitive market. The company is not in a very good situation as the company is new in the market and the popularity is almost just at its beginning.

High profits and revenues are not feasible for the company to be predicted as the competitiveness in the market will not allow a new company to make enough of its operations and the company will not be able to offer much to the customers as the cost of maintenance and cost of operations are high.

Issues:

The company is new in the market and the business of the company is the same as of the other website holders, it is to offer rental houses to the customers and the population. The information is for free however, any advertisement or information is not free to be posted on the website. The company charges for the ads and from these charges the company makes money.

The issue is that the company cannot charge a high rate of charges to the customers of the website as the company is in a competitive market and any higher charges will make the customers to shift towards the other companies. The major issue is that the cost of operations is high and the revenues from the website in not potentially high to encounter the expenses.

Challenges:

The company is under many challenges as it is new in the industry. Moreover, the company is unable to make profits out of its operations as the major stakeholders of this industry are not allowing the company to make enough from its operations.

The company is in a critical position and it is not looking feasible that it will be able to make enough profits in the near future. Also, the stakeholders of the company are not allowing enough time to Jon to make up for the losses and make innovation in the company.

Market capitalization:

Market capitalization is the total market value of the amount of shares present in the market outstanding for the public to be traded. It is equal to the share price times the number of shares outstanding. The company does not have the option of publically announcing the shares as if the company does so then it will lose its potential in the market and it will probably get merged into another company or it will be acquired by some other company.

Disruption:

The company is not in a good situation and if the operations of the company are disrupted the company will go into severe loses and the revenues will stop coming towards the company. The company is not in a condition to make disruptions for others and make use of their disruptions so disruptions will not allow the company a fair deal of success in its operations and the disruptions can be loss of customers and antagonism from employees.

Web 2.0 innovation:

The company is allowing its users to share through their website and the term used for such sharing of information and other stuff is called web 2.0. The company is offering its customers to share and create information on the website which they have created.

This type of information sharing allows people to share information in an easy and an innovative manner. This makes it easy for the users to share anything they like to share about their ideas and information. This is a very popular way to communicate. The company is providing people the opportunity to communicate their information on their website which will be helpful for the website to grow..............

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