1. The “Harvest” Decision
Advantages Disadvantages
- Access to short- & long-term capital - Lose of operating confidentiality
- Future offerings to fund growth - Cost of public auditing, reporting
- Establish market value and shareholder fiduciary responsibility
- Controls to protect shareholders and
and from shareholders
- Image management more serious
- Info controlled to prevent inside trading
- SEC limits timing and amount of stock
insiders may sell
- Founders get money immediately - Key managers/employees needed to keep
- Acquiring company assumes all risks. core employees
- Non-compete clauses limit expenditure
. - If sale through stock exchange, founders
receive a fraction of the purchase price
- Access to resources required to grow - Synergies do not materialize
- Increase scale, scope and market share - Clash of cultures, operations, or system
- Management continues to be involved - Lack of freedom to operate the company
Public
offering
Outright
sale
Merger,
acquisition or
partnership

2. Evolution of Basic Portal Concept
Where users would link to all manner of Internet
services and activities (search, content, personal
authoring, transaction, and social-interactive sites)
Advertising income: more than cover the cost of
maintaining the portal
To keep them in the Portal, and coming back.
So advertisement and sales increase.
“Attract, engage, entice, and entrap.”

3. Characteristics of Web Portal
- Data from multiple sources and in multiple formats
organized into a single, easy-to-use menu.
- Incorporate triggers that alert users or run an
application when a specific event take place.
- Allow users conduct business transactions.
- Web-based services, such as: chat rooms, searches,
free-password-protected , FTP,bulletin boards,
live moderated events, hosted discussion forums,
news, entertainment, and retail services.

4. Emerging Business Models
Examples
Key
factors
Revenue
model
Markeplace Aggregator Vert. Portal Hor. Portal
QuickenIns InsWeb Quicken.com Yahoo!
E-Loan AutoWeb.com Heltheon AOL
Controlling No inventory Deep content Provides access;
inventory; and solutions partners and
selling affinity groups
Transactions; Transactions; Transactions; Advertising;
service fees; adverstising; commissions; affiliation fees;
commission marketing fees advertising; subscription
affiliation fees or access fees

5. QUICKEN INSURANCE CASE STUDY WERE:
THE PRIMARY OBJECTIVES OF
QUICKEN INSURANCE CASE STUDY WERE:
1. TO EXPLORE B2C INTERNET BUSINESS MODELS
–A SHIFT THAT IS LESS ABOUT TECHNOLOGY THAN
ABOUT A NEW BEHAVIOR THAT IS REACHING
CRITICAL MASS
2. TO EXAMINE DIFFERENT EMERGING E-BUSINESS
MODELS: MARKEPLACE, AGREGATOR, VERTICAL
PORTAL, AND HORIZONTAL PORTAL
3. ANALISIS OF THE TRANSFORMATION OF THE
INSURANCE INDUSTRY.