Case | HBS Case Collection | November 2001

Korea-Tender

by Das Narayandas and Kate Attea

Abstract

Korea-Tender is a closed-bidding auction company trying to break even and must select the best opportunity to increase membership and revenue. It can continue its current model with heavy advertising, try to modify its costs, or develop an additional business model such as telemarketing, direct sales, or CRM. Among the issues facing president and CEO Edwin Yu, conveying credibility and educating potential consumers on tendering the company's primary sales model, is the first priority. He must decide whether proper execution of marketing is enough to exhaust Korea-Tender's membership growth, whether it can be improved in some manner, or whether a new supplemental revenue stream is necessary to reach break even. If Yu develops another business model, he must decide which one best complements the company's current resources and skills. Includes color exhibits.

Keywords: Auctions; Business Model; Advertising; Business Startups; Problems and Challenges; Marketing Strategy; Revenue; Growth and Development Strategy;

Citation:

Narayandas, Das, and Kate Attea. "Korea-Tender." Harvard Business School Case 502-035, November 2001.