Case | HBS Case Collection | September 2010 (Revised April 2013)

Gazelle in 2012

by Andrei Hagiu and James Weber

Abstract

Gazelle has pioneered a reCommerce intermediation model: it buys used electronics from consumers and resells them on eBay or to wholesalers. Going forward, its two main strategic challenges are 1) deciding how much to rely on partnerships with large retailers for growth and 2) deciding whether to continue as a "merchant," i.e., buying and reselling goods (and thereby taking inventory risk), or to transform itself into a "two-sided platform" connecting sellers and buyers without taking inventory risk.

Keywords: Business Model; Growth and Development Strategy; Markets; Two-Sided Platforms; Partners and Partnerships; Business Strategy; Retail Industry; Service Industry;

Citation:

Hagiu, Andrei, and James Weber. "Gazelle in 2012." Harvard Business School Case 711-446, September 2010. (Revised April 2013.)