(Solved): 1. Does Etsy have a standard or disruptive business model? Chapter 4 discusses s ...

1. Does Etsy have a standard or disruptive business model? Chapter 4 discusses specific types of standard business models (p. 126) and specific types of disruptive business models (pp. 127 – 130). Clearly identify Etsy’s type of business model and explain your answer.

2. Create a list of Esty’s “stakeholders”? Explain why you think each one is a stakeholder.  (Hint: See Investopedia’s definition of a stakeholder: https://www.investopedia.com/terms/s/stakeholder.asp)

3. How does Etsy create, deliver, and capture value for these stakeholders? Be as specific as possible.

4. Etsy’s mission is to “re-imagine commerce in ways that build a more fulfilling and lasting world”. Do you think Etsy’s current business model achieves this mission? Do you have ideas for new ways it can achieve this mission?

(Try to summarize, please. Thank you)

marketplace to sell it. So he, along with Chris Maguire, Jared Tarbell, and Haim Schoppik, launched Etsy, an online marketplace for crafts where hobbyists and artisans could connect with people interested in buying handmade goods. From the beginning, Etsy championed the idea of community. The company saw itself as an advocate of small merchants and artisans. It also took steps to engage its community and empower its sellers. Every Monday evening Etsy sponsored craft night, where 50 to 80 people came to its office in Brooklyn to make crafts. The company also sponsored employee craft nights where its employees would hone their craft-making talents. At the same time, Kalin started holding virtual town hall meetings with Etsy sellers to provide tips to them on how to increase their sales. All this was done in part to build community, but there was a broader purpose. Kalin and his team knew that Etsy's financial success hinged on how much commerce flowed through its site. Since it launched in 2005 , Etsy has grown steadily. It currently employs 685 people in the (continued) \( \begin{array}{ll}\text { and sellers on its site, and the sense of community that } & \text { October } 1 \text {, 2013, Etsy announced that it would allow } \\ \text { it has created. Although its website is easy to navigate, } & \text { factory-made goods on its site. This move, according } \\ \text { that's not what differentiates Etsy from its rivals in that } & \text { to the company, was necessary to allow its most } \\ \text { many online businesses have websites that are easy } & \text { successful sellers to expand their businesses and keep } \\ \text { to navigate. What differentiates Etsy are the factors } & \text { them from leaving the site. There are restrictions. The } \\ \text { mentioned above. It's instructive to note that Etsy's } & \text { seller must meet a set of labor and ecological criteria. } \\ \begin{array}{ll}\text { points of differentiation are made possible by its core } & \text { Some controversy was caused by the decision to allow } \\ \text { competencies and key assets. From the beginning. } & \text { manufactured goods, but Etsy's numbers continue to } \\ \begin{array}{ll}\text { Etsy has excelled at helping its sellers increase sales } & \text { grow. } \\ \text { via web-based tools, educational materials, and } & \\ \text { offline events. It also set its business up in a way that } & \text { Resources } \\ \text { encourages its sellers to build awareness of Etsy in } & \text { Etsy has three core competencies - the development of } \\ \text { general. Each seller has its own Etsy store. As sellers } & \text { tools and educational materials to empower sellers, the } \\ \text { promote their Etsy stores, they introduce people to Etsy } & \text { growth of a vibrant community of buyers and sellers, and } \\ \text { more broadly, which is a key factor that has enabled } & \text { the ability to generate word-of-mouth awareness of its } \\ \text { Etsy to grow so quickly. } & \text { business. A key to Etsy's success has been a recognition } \\ \text { Etsy has two target markets-its sellers and its } & \text { that its sellers, which it affectionately calls Etsians, must } \\ \text { buyers. Its sellers are the producers of handmade } & \mathrm{~ b e ~ s u c c}\end{array}\end{array}\end{array} \) Handbook and the Etsy Success Newsletter, both Operations geared toward helping Etsy newbies and veterans boost their clientele. Etsy Labs organizes community events for Etsy's website was built and is maintained by an Etsy sellers, facilitates online workshops, and assembles in-house staff of IT professionals. The site has a homespun rather than a highly polished look. This around a particular location or craft. These efforts have is intentional, although some critics have urged Etsy enabled Etsy to build and maintain a vibrant community functionality. As mentioned earlier, Etsy is strictly of buyers and sellers. a platform that brings buyers and sellers together. in a way that has led to a core competency in generating Whil of the logistics involved with the sales process are promote their Etsy stores, they promote Etsy more handled by the seller. This includes stocking the store, broadly. Etsy has also been a leader in social media. \( \quad \) merchandise. This arrangement relieves Etsy of the cost and \( 2.7 \) million Twitter followers. The combination of and responsibility of providing for those functions. \( \begin{array}{cl}\text { an easy-to-navigate website and an aggressive social } & \text { In terms of channels, the majority of sales flow } \\ \text { media presence has been instrumental in Etsy's growth. } & \text { through Etsy's website, via one-to-one transactions } \\ \text { In regard to key assets, Etsy's platfom is intuitive } & \text { between individual buyers and Etsy sellers. In } 2015, \text { Etsy } \\ \text { and easy to navigate. Its community of buyers and } & \text { launched Etsy Wholesale, a platform that connects Etsy } \\ \text { sellers continues to grow. Its sellers populate its site } & \text { sellers with brick-and-mortar stores. The program allows } \\ \text { with a continual influx of fresh new products, which } & \text { retailers to shop in a restricted section of the website }\end{array} \) with a continual influx of fresh new products, which retailers to shop in a restricted section of the website keeps its buyers coming back. Etsy takes deliberate steps to add to its key assets in ways that support its they are able to handle large orders. As of late 2015, mission and provide people another reason to engage more than 2,500 sellers and 6,500 local boutiques had in its site. For example, in early 2012, Etsy became a \( \quad \) signed up for the service. While most of the stores that Certified B Corporation. B Corporations are a new type of company that uses the power of business to solve \( \quad \) Nordstrom and Whole Foods, are also participating in the \( \begin{array}{ll}\text { social and environmental problems. } & \text { program. For a seller, opting into the program requires } \\ & \$ 100 \text { one-time fee and a } 3.5 \text { percent commission on }\end{array} \) Notable is the amount of funding that Etsy has raised \( -\$ 97 \) million prior to the initial public offering Challenges Ahead (IPO) and \( \$ 237 \) million in the IPO. The funding has been used to flesh out the company's infrastructure, add Etsy's primary challenge will be to maintain the employees, invest in strategies for expansion, and fund integrity of its business model while trying to grow. seller education initiatives.