February 13, 2020

In 2017, the home goods company Brandless launched with a novel way to take on Amazon as well as other big-box retailers. The direct-to-consumer startup sold high-quality, organic versions of everything from toilet paper to beauty products in simple, no-frills packaging. Brandless claimed that this eliminated the so-called “BrandTax” levied by many companies, which could account for as much as 40 percent of the product’s actual cost. With little money spent on traditional marketing, Brandless initially charged just $3 for Continue reading

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January 30, 2020

Last weekend during a busy dinner service, San Francisco restaurant owner Pim Techamuanvivit received a strange phone call. The caller wanted to know when the delivery he ordered through Seamless would turn up since he had already waited 45 minutes for it. “I think you must be confused, because I don’t do delivery,” replied Techamuanvivit. The frustrated person on the other line then asked why her business was listed on Seamless. Upon further investigation, Techamuanvivit discovered that both Seamless and Continue reading

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January 28, 2020

In 2013 the fitness startup ClassPass launched as a way to help gyms and workout studios fill open spaces in exercise classes. Through the ClassPass app, users can browse a list of available classes in their area and book times that fit within their schedule. They also don’t need to sign up for a variety of different gym memberships since ClassPass now partners with more than 30,000 fitness centers in 28 countries. The company’s growing global reach has attracted interest Continue reading

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November 22, 2019

Yesterday, we looked at how video game companies earn billions of dollars annually by selling virtual products to an ever-growing market. Inspired by the success of this unusual industry, some clothing companies have started selling digital outfits that don’t exist in the real world. For instance, the fashion label The Fabricant recently sold a virtual dress for $9,500 to the wife of a San Francisco tech executive. Although she cannot actually put on her expensive new outfit, she can Photoshop Continue reading

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November 21, 2019

Analysts estimate that last year consumers spent more than $50 billion on virtual items in video games like Counter-Strike and World of Warcraft. This lengthy but highly informative video explains why the market for virtual items has grown bigger than global box office returns for the movie industry. 

Questions:

  1. How are in-game economies similar to real-world economic systems?
  2. What are the advantages and disadvantages of online marketplaces that sell virtual goods?
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November 19, 2019

Thanks to the popularity of streaming services like Spotify and Apple Music, some lucky musicians can go viral and attract large fan bases very quickly. In the past, artists often had to tour across the country for years playing small clubs before they got noticed by major record labels. That’s not the case these days, though. For instance, the teenage singer-songwriter Billie Eilish released her debut album less than a year ago and has already sold out a stretch of Continue reading

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November 15, 2019

This week, Google announced that it’s launching a banking service next year that will offer “smart checking” accounts to mobile-focused customers. Known as Cache, the program is the result of a collaboration between the search giant and two banks: Citigroup and Stanford Credit Union. Although details of the partnership remain limited at this time, Google eventually wants Cache to become an extension of its Google Pay app. The company also claims that customers will “benefit from useful insights and budgeting Continue reading

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November 12, 2019

Major conglomerates like Procter & Gamble, Kimberly Clark and Georgia-Pacific earn more than $31 billion annually from toilet paper sales. But while this industry is certainly lucrative, it’s not exactly innovative. After all, one of the few significant developments these companies have made in recent decades is to sell larger rolls. Brands such as Charmin and Quilted Northern treat their products like commodities, meaning that they compete primarily based on price. By concentrating on value, the biggest names in toilet Continue reading

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October 4, 2019

In recent years food delivery startups like Postmates and Doordash have grown into multi-billion dollar operations by bringing takeout from all sorts of places directly to customers’ doors. But these companies don’t just service restaurants: people can also order everyday items from Walgreens or 7-Eleven and receive them hours later. Of course, consumers are more familiar with Postmates and Doordash as takeout services, not grocery delivery companies. 

As a result, both startups are brokering deals with retailers and supermarkets Continue reading

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October 3, 2019

This past summer, the startup WeWork heavily promoted what it promised would be a historic initial public offering (IPO). Analysts seemed to agree: Goldman Sachs estimated the office space leasing company could reach a valuation of $96 billion upon its stock market debut. When WeWork submitted the first documents for its IPO, though, the company settled on a potential valuation of $47 billion as it promised to change the world as well as the office leasing industry. Co-founder and CEO Continue reading

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