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Case
-
Reference no. 9B16M074
Prize winner
Authors:
Published by:
Ivey Publishing (2016)
Version:
2016-04-29
Revision date:
06-Jun-2016
Length:
15 pages
Data source:
Published sources

Abstract

When Etsy proceeded with an initial public offering on the New York Stock Exchange in April 2015, it was the second US company to go public as a certified B Corporation. Etsy's status as a B Corporation meant that social responsibility was ingrained in its mission. However, as an online marketplace for artisanal goods, Etsy faced a number of challenges. Principal among them was the launch of the new online store 'Handmade' at Amazon, a direct attack on Etsy. Etsy had a core base of merchants and buyers, but Amazon had significantly more as well as a greater level of financial security than Etsy. Etsy's fast growth had also put pressure on its merchants' ability to offer larger quantities of handmade goods. Many merchants were pressing the company to allow sales from large-scale manufacturing, a path the company had eschewed since its start. Could Etsy find a way to successfully confront these challenges while maintaining its B Corporation ethos?

Topics

B Corporation; Business model; Online distribution; Online marketplace; Handmade; Crafts; Flea market; Amazon; General management / strategy
Location:
Industry:
Size:
Large
Other setting(s):
2015

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Awards, prizes & competitions

2016 - John Molson MBA Case Writing Competition - $1000 prize winner

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