Case
Supplementary Resources
Abstract
In November 2009, bidorbuy was the largest South African online marketplace. Following a failed attempt earlier in the year to purchase bidorbuy, kalahari.net – a subsidiary of Naspers and a highly successful online retailer – indicated that it was going to compete directly with bidorbuy as an online marketplace. Andy Higgins, managing director of bidorbuy, was a firm believer that, if his company could read a certain level of wide-scale popularity, it would virtually be impossible for a newcomer to compete. Higgins therefore had to find ways for bidorbuy to do this before kalahari.net entered the market.
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
Resources
Exhibit 1 Bidorbuy Growth Chart per Month
Source: Courtesy of bidorbuy, 2009.
Exhibit 2 Bidorbuy Organogram
Exhibit 4 How Does bidorbuy Work?
Without registering or divulging personal information, Internet users are able to browse descriptions and images of all products offered. In order to participate in the auction, users are required to register, which takes approximately 60 seconds. They will then be assigned an account number and password, which will allow them to bid on products and to list their own products for auction. When listing an item, the seller decides what the reserve price will be. This amount is not disclosed to other users, but there is a message on the product page saying whether or not the reserve price has been met. (Note: the bidding may start below the reserve price.) The reserve price is the lowest amount that the seller is willing to accept for the product.
Goods are displayed on auction for a period – between one day and four weeks. The seller decides on the auction period, usually depending on the type and value of the item on offer.
On completion of a successful auction [i.e. at least one bid over the reserve price (if one is set)], both seller and buyer(s) are notified automatically by the system of the successful deal. Thereafter, both parties make contact in order to conclude the deal. Both sellers and buyers are bound by a legal agreement, which they sign upon registration on the site.
Source: www.bidorbuy.co.za , 2009.
Exhibit 5B Company Structure: Media24
Source: Media24 marketing division
AS AT JUNE 2009
Exhibit 6 Example of Advertisement for Street Poles and Print Media
Source: Courtesy of bidorbuy, 2009.
Exhibit 7 Summary of The Tipping Point by Malcolm Gladwell
The Tipping Point
Malcolm Gladwell's book The Tipping Point gives an analysis of how trends are sparked and take hold.
The processes and mechanisms by which some trends achieved exponential popularity while others fade into oblivion has long been thought to be mysterious and resistant to analysis. However, Gladwell's central argument is that there are actually a number of patterns and factors at play in virtually every influential trend. If one analyses the evolution of any major phenomenon, the author suggests, you will find that the processes involved are strikingly similar.
Gladwell identifies three key factors that play a role in determining whether a particular trend will ‘tip’ into wide-scale popularity: the Law of the Few, the Stickiness Factor, and the Power of Context.
The Law of the Few contends that, before widespread popularity can be attained, a few key types of people must champion the idea, concept or product. Gladwell describes these key types as Connectors, Mavens and Salesmen. If individuals representing all three of these groups endorse and advocate a new idea, it is much more likely that it will tip into exponential success.
Gladwell defines the Stickiness Factor as the quality that compels people to pay close, sustained attention to a product, concept or idea. Stickiness is hard to define, and its presence or absence often depends heavily on context. Often, the way that the Stickiness Factor is generated is unconventional, unexpected, and contrary to received wisdom.
The concept that Gladwell terms the Power of Context is enormously important in determining whether a particular phenomenon will tip into widespread popularity. Even minute changes in the environment can be a major factor in the propensity a given concept has of attaining the tipping point. Also, Gladwell defines the term ‘context’ very broadly, discussing the implications of small variations in social groups and minor changes in a neighbourhood or community environment as shifts that can cause a new idea to tip.
Source: Quoted from WikiSummaries: Free Book Summaries, www.wikisummaries.org .
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
