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Spiegel Online Economics Edgar Atukeren MBA SBS (Swiss Business School) Alex Rau, Daria Revanchenkova, Arsa Grgurevic Desk of Articles: 1 History 2 Assignment 3 Online Classified Promoting in Germany 4 Deciding on the best segments a few Business Thought and Principle 6 Competition 7 Monetary Projections 8 The Problem being unfaithful Possible Alternatives 10 Realization 11 Suggestions and Lesson Learned History Spiegel On-line is one of the leading news Sites in Indonesia and other German born speaking countries, as Austria and Swiss.

It is a a part of a Spiegel Group, author of many print products in addition to Der Spiegel and developer of the Spiegel TV Mag. The Spiegel Group was also active in tv set film development.

It took 1st steps toward internationalization by English-language models of Spiegel special plus the monthly distribution of journals in Hungary and Belgium. In 2006 the Spiegel Group had more than you, 400 personnel. Total income of the Spiegel Group were approximately around 322 million euro, which Spiegel Online contributed 12-15 million pound. 0% of revenues resulted from internet advertising, making this the main source of income for Spiegel On-line. The website is masking various subject areas as governmental policies, business, vistas, arts, science, education, entertainment, sports, and travel. Spiegel is also a major contributor to the Hamburg Multimedia School. This organized being a public-private collaboration and offers MASTER OF BUSINESS ADMINISTATION in Press Management, film, and writing. In their second year, MBA students commonly engaged in asking projects with major media companies. Job This year the students must study on two questions: ) Were there any chances for an economically good entry into the market to get interactive classified ads? 2) What would the business model appear to be in detail? That they had only two restrictions: nearly anything in the adult segment was seen as incorrect and the price range will be limited. The student group split all their analysis in to four actions: * Exploration of industry volume and growth 5. Analyses of possible competitors * Number of lucrative niches * Advancement adequate principles Interactive Grouped Advertising in Germany The interactive promoting in Australia is based on supplying space to get classified ads intended for other companies.

There are approximately 20, 500 Internet sites, which are performing that and they will generate about 4 percent of all online revenues. On-line services experienced gradually substituted newspapers and magazines in the classifieds segment. There are three or more most important active segments currently: * Auto (which cover 1/3 of customers searching for a car) * Real estate (200 billion european are made per year) * Job advertisement (30% of jobs are found online) Choosing the right sectors Spiegel On the net is following a brand new strategy: horizontal the usage into a fresh market (interactive ads). The organization decided to broaden and cover new arket, which can create additional earnings for the corporation. As automotive, real estate, and jobs online segments are already dominated by large competition, Spiegel On-line needs to get in the way in the industry, by carefully finding the segments, the most profitable ones. So it decided to concentrate on high quality standards and goods that matched the image of Spiegel and chose superior quality cars, high- paying careers and skill objects. Spiegel Online Fine art Platform They prepared a full business plan on each of the 3 market segments. The auto and work segments looked like there was generally rewarding and growing.

Art, however, promised to be an interesting specialized niche that hadn’t yet been covered by any well-known firm. Competition Many Web sites had been positioned in the top price section. Serve as a marketing and sales tool for high-value things. In the low cost segment, Internet sites are mostly made by amateurs and hobby artists. These types of Web sites did not attract significant audiences. The internet art market had received some attention from shareholders and mass media companies (Example Burda-photo photo gallery Lumas). Chance for Spiegel on-line is to produce platform in the middle and lower price segment.

Business Idea and Concept The notion consisted of two integrated parts for the Spiegel internet surfers interested in home repair: a advertising platform and a community platform. Art platform Core to the Spiegel Online art program was the sales platform. The sales system homepage would lead to all art things up for sale. A search engine would allow selecting objects by simply price, design, size, artist¦ Navigation menu would allow quick access to additional site features. The home site would also include a voting area. Community The Digital Art Gallery could be customized, just like MySpace. Users can produce their own profiles.

The profile included a virtual walk-through to photo gallery. Artist and galleries could use the Virtual Art Gallery as a marketing tool. Target group The Spiegel Online art platform addressed two target organizations: first, persons interested in fine art, and second, artist and galleries. Client benefits Intended for buyers: low-risk playing field, moderate prices, high openness, users no longer need specialized knowledge. To get sellers: Low entry boundaries, low retailers fees, appealing for fresh unknown designers. Benefits pertaining to Spiegel on the web Monetary: New revenues by simply commissions, insertion fees, and shop sales. Non-monetary: Father or mother brand, premium quality image.