Interactive corp - CASE STUDY -

Group - IX

QUESTION 1

What are some of the ways in which Diller's e-commerce online service companies could cooperate to deliver superior value to the customer? 

With presence in many diversified businesses try and SYNERGIZE AND INTEGRATE so that management and operations are easier and cheaper

TRAFFIC ECOSYSTEM – Direct visitors to affiliate websites and thus increase the reach of its group websites

With integration offer a COMPLETE SOLUTION rather than piecemeal solutions to part enquiries made

Post adverts of group companies on its own affiliate websites and even give PROMOTIONAL OFFERS AND DISCOUNTS for using multiple websites

QUESTION 2

Would you recommend that IAC sites have a single Web site where users could find all of the services of IAC, similar to a

portal? Why or Why not?

IAC has expanded its business areas since the case was developed

Portals list information and updates from diversified sections in a single place

With present business footprint, IAC will not have to invest a lot

Possible downside would be conflict within group businesses – like between Match.com & Chemistry.com

Would also help them in synergizing the business by understanding user behaviour

Give IAC a stronger brand name and power in market

Hence, our answer is..

QUESTION 3

Based on reading of this chapter on services, what is the common thread that links together most IAC

(InterActiveCorp) Web properties? How do these properties leverage the unique qualities of the Web?

Hence, operating expenses are lower

Most of IAC properties are websites with no or very small inventory and physical presence

Technical synergy and Resource utilization possible

Most companies recognized as having high growth potential

Most businesses act as information exchange or provide medium for different interested parties to meet

Question 4

Compare and contrast the IAC / InterActiveCorp over the past three years with the merger of AOL and Time

Warner. What mistakes did AOL/Time Warner make that InterActiveCorp needs to avoid?

Comparison

AOL-Time Warner merger of two global majors

IAC follows route of acquisition and not merger

During early 2000’s users started moving to broadband internet and AOL suffered

IAC acquires firms with high growth potential and emerging markets

Merger necessitated higher integration between workforce, culture and business

More of a holding company and hence does not need integration between cultures and different workforce

Being merger of equals the bad services stigma of AOL generated affected Time Warner

IAC being much bigger company acquired company’s of smaller size

AOL-Time Warner merger was just before dotcom bubble bust

Most of IAC’s acquisitions were at trough of dotcom bubble bust

Mistakes to avoid

AOL-Time Warner merger was just before dotcom bubble bust

IAC should read market signals carefully to find acquisition targets

Inability to integrate cultures, business and workforce

IAC should carefully evaluate the integration issues before acquisitions

With growing size should avoid conflict within its group companies

Question 5

Suggest some likely ways in which the search engine Ask.com could help create a ‘traffic ecosystem’ among IAC

properties. Do you think users should be notified of this cross marketing?

Show relevant results from its group companies either as sponsored results or searched results

ASK.com would help IAC understand user requirements and thus ability to customize its offering to fulfill those requirements

Offer incentives to users for using multiple IAC services

Offer a complete solution by adding offerings of its different group websites based on the queries in ASK.com

Can also try to raise ASK.com from search platform to portal suggested in earlier question

Offer a user searching for concert tickets suggestions about various travelling and hotel options and offer them incentive for booking it all from IAC group websites

Allow users to choose Gift options comprising of concert tickets, tour packages, etc – all from its group websites

Informing users is legally not compulsory and also very difficult

IAC should definitely not try to hide this ‘cross-marketing’ in any way

Conversely, informing users beforehand would make company appear more open and truthful

Thank YouFor Your time..!!

HOPE PRESENTATION WAS WORTH IT

ASHUtosh kumar jha (91011) Deepinder singh (91016) Divanshu Kapoor (91017) Harsh agrawal (91022) Nishant singh (91039) SAKET KUMAR SINGH (91046)

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