Online Portals

Thomas R. Eisenmann; Sanjay  Pothen

Background Note | HBS Case Collection | December 2000

Online Portals

by Thomas R. Eisenmann and Sanjay Pothen

Abstract

Describes the online portal business model. Analyzes the model, focusing on the tactics used to acquire new users, turn new users into repeat visitors, and monetize user traffic. Explains portals' revenue and cost drivers and their implications for pursuing aggressive growth strategies. Finally, explores the challenges facing companies that aspire to develop portals for new online access technologies, such as wireless data and interactive television. To accompany teaching cases on online portals in courses on Internet strategies and e-commerce. Provides background on the online portal business model, and explains how it differs from other Internet business models. Examines the strategic choices that portals typically face. Also describes how portals can add value as consumers adopt emerging technologies, such as wireless data and interactive television.

Keywords: Business Model; Web Services Industry;

Format: Print

29 pages

Educators Purchase

Citation:

Eisenmann, Thomas R., and Sanjay Pothen. "Online Portals." Harvard Business School Background Note 801-305, December 2000.

Avni Patel Thompson, founder and CEO of Poppy, an online marketplace for on-demand childcare, revisits the venture's final months, and discusses the steps she took in the wake of the shutdown. This case explores experiments the company conducted to refine its original business model, as well as how Patel Thompson rekindled her entrepreneurial ambitions. It is part two of an A and B case, the A case being: Poppy: A Modern Village for Childcare Case 818 075, November 2017.

Aereo aimed to disrupt television program distribution by providing consumers access to local broadcast TV programming using offsite antennas, cloud-based DVRs, and an Internet connection. With Aereo, consumers could “cut the cord” and avoid the high cost of a cable TV subscription. Soon after launching service in NYC in 2012, Aereo was sued by broadcasters, who asserted that the startup was distributing their programs without permission — and without paying retransmission fees. After Federal District and Appeals Court victories for Aereo, the U.S. Supreme Court ruled against the startup in 2013, and it was shut down, after investing $97 million. The case looks at Aereo's journey and offers reflections from founder/CEO Chet Kanojia.

The case provides students an opportunity to examine the founding of an e-commerce startup that used storytelling and compelling images to sell furniture and home accessories to millennials. The case describes the rapid sales growth the company experienced, as well as the challenges it faced with operations, delivery, and order tracking. Finally, the protagonist is poised to raise a Series C financing he hopes will value the company at $200 million.

Faculty & Research

Online Portals

Abstract

Citation:

About the Author

More from the Author