E Business – Istockphoto Essay
Success factors for the Business model of Stockpot 1 . Scrounging model: Scrounging is the act of taking a Job once performed by employees and outsourcing it to a large, undefined group of people, generally through the form of an open call over the internet. With Stockpot the community based model was a key factor. Each member is incentive to contribute as the growth of Stockpot leads to his personal gains (either as up-loader or unloaded). . Alternative to high priced competitors: low price high volume strategy a. Micromanagement model – Competitors’ $500 Vs. $0. 25 at Stockpot b. Royalty free 3. High Quality (O Low Price) The inspectors ensured quality with respect to content and quality, therefore as a buyer there was no trade-off for lower price/ picture. 4. Technology penetration c. Photography: availability to camera technology even for amateur photographers at affordable prices. D.
Internet and PC: Increased bandwidth and home PC’s Increased access to stock photos Challenges faced a. Sustainability of micromanagement model b. Professional photographers – perception of undervaluation of their work c. Support to Photographers and buyers – though low price model will benefit buyers Like small business, It might not benefit photographers whose art Is
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The competitors might serve a deferent type of clientele looking for royalty and photographers who don’t expect large volumes. Whereas Stockpots can provide an alternative for amateur photographers, where the money they make Is proportional to the download volume. Hence macro or microscopic may be profitable for different type of photographers. 2. Scalability : It can also be scalable due to main reason a. Micromanagement model will enable the organization to pay the bandwidth and other costs b. Proportional increase in internal resources.