Managing hyper-growth : a system dynamics analysis of competitive dynamics in business-to-consumer electronic commerce
Thesis (S.M.)--Massachusetts Institute of Technology, Sloan School of Management, 2000.
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| Format: | Thesis |
| Language: | eng |
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Massachusetts Institute of Technology
2005
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| Online Access: | http://hdl.handle.net/1721.1/9287 |
| _version_ | 1826193436133294080 |
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| author | Giese, Martin, 1970- |
| author2 | John Sterman. |
| author_facet | John Sterman. Giese, Martin, 1970- |
| author_sort | Giese, Martin, 1970- |
| collection | MIT |
| description | Thesis (S.M.)--Massachusetts Institute of Technology, Sloan School of Management, 2000. |
| first_indexed | 2024-09-23T09:39:12Z |
| format | Thesis |
| id | mit-1721.1/9287 |
| institution | Massachusetts Institute of Technology |
| language | eng |
| last_indexed | 2024-09-23T09:39:12Z |
| publishDate | 2005 |
| publisher | Massachusetts Institute of Technology |
| record_format | dspace |
| spelling | mit-1721.1/92872019-04-12T11:10:16Z Managing hyper-growth : a system dynamics analysis of competitive dynamics in business-to-consumer electronic commerce Giese, Martin, 1970- John Sterman. Sloan School of Management. Sloan School of Management. Sloan School of Management. Thesis (S.M.)--Massachusetts Institute of Technology, Sloan School of Management, 2000. Includes bibliographical references (p. 51-53). Many Internet companies have decided to follow a 'get big fast' strategy: they invest heavily in marketing to build their user base and market share. At ]east for now, the capital markets seem to encourage this strategy: the stock price of the leading competitor in a category (say, Amazon in online book selling) typically trades at a significant premium to the stocks of other category competitors, as a multiple of revenues or users. Is this behavior rational? The paper addresses this question with the help of a System Dynamics model that reflects two particular online retail markets (books and pet supplies). The Dot Com Model captures the characteristics of the main competitors -- their basic economics (how they make money), operating and financial strategies -- and the behavioral decision rules for consumers, managers, and investors in the enterprise. The purpose of this model is to evaluate the different growth strategies seen in Internet businesses, explore their sustainability under different competitive scenarios, and to test the 'rationale' that capital markets are using to value these companies. The Dot Com Model is used to identify a typology of winning strategies and failure modes and the range of scenarios and conditions under which each of those strategies applies. Finally, the paper explores the reference modes for the eventual reduction of the 'speculative excess' in dot.com stocks and the return to more traditional valuation heuristics (multiples of net income, discounted cash flow analysis). by Martin Giese. S.M. 2005-08-23T12:00:00Z 2005-08-23T12:00:00Z 2000 2000 Thesis http://hdl.handle.net/1721.1/9287 45752993 eng M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. http://dspace.mit.edu/handle/1721.1/7582 164 p. 10122465 bytes 10122219 bytes application/pdf application/pdf application/pdf Massachusetts Institute of Technology |
| spellingShingle | Sloan School of Management. Giese, Martin, 1970- Managing hyper-growth : a system dynamics analysis of competitive dynamics in business-to-consumer electronic commerce |
| title | Managing hyper-growth : a system dynamics analysis of competitive dynamics in business-to-consumer electronic commerce |
| title_full | Managing hyper-growth : a system dynamics analysis of competitive dynamics in business-to-consumer electronic commerce |
| title_fullStr | Managing hyper-growth : a system dynamics analysis of competitive dynamics in business-to-consumer electronic commerce |
| title_full_unstemmed | Managing hyper-growth : a system dynamics analysis of competitive dynamics in business-to-consumer electronic commerce |
| title_short | Managing hyper-growth : a system dynamics analysis of competitive dynamics in business-to-consumer electronic commerce |
| title_sort | managing hyper growth a system dynamics analysis of competitive dynamics in business to consumer electronic commerce |
| topic | Sloan School of Management. |
| url | http://hdl.handle.net/1721.1/9287 |
| work_keys_str_mv | AT giesemartin1970 managinghypergrowthasystemdynamicsanalysisofcompetitivedynamicsinbusinesstoconsumerelectroniccommerce |