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Baby-Center Case Solution & Answer

Baby-Center Case Solution

Introduction:

An online provider of content, community, and commerce –Baby Center mainly included new and expectant parents as the primary consumers.The company was founded in the year 1997 and had around 25 employees after one year of its foundation. The organizational mission was primarily based on “building the most complete resource on the internet for new and expectant parents which would bring improvement in the confidence of parents and make their life easier. Baby Center observed a significant growth opportunity because around 4 million babies were born in the United States each year followed by the average spending of American parents around $7,100 per annum. Similarly, women were considered to be fastest group of internet users as the target audience. But, there had been a significant increase in competition and the organizations were aiming to build strong web presence in the market. The approach of Baby-center to expand internationally and maintenance of leading as an information and product source had turned out to be a challenge. (Tyee Harpster, 2000)

Evaluation of Baby-center’s efforts:

The mission of the organization related to international expansion was mainly based on three strategic principles i.e. expansion of Baby-center to be identified as a powerful brand globally, balancing of long-term value creation and near-term risk, and minimizing the impact of business expansion on the physical and financial resources. For this purpose, the efforts of Baby-center included the approach of building an editorial team for the provision of guidance to the new and expectant parents. The institution of the sponsorship program was to earn revenue which was expected to interfere with its objective but was the only source to generate revenue. The launch of bulletin boards and regular live chats was to facilitate discussion.

Similarly, the addition of online store to its site leveraged the content on the site for the provision of detailed and reviews about the products. The launch of a custom publishing division was Customer Health Interactive (CHI)included the use of editorial content development and market research. Additionally, the marketing strategic approach of Baby-center was focused on online advertising and public relations. The commerce software was customized by the Baby-center team in the Dynamo application server of ATG for supporting unique features like registries of gift. In terms of international expansion, it identified three regions referred to as e-zones i.e. Asian e-zone, UK e-zone, and German e-zone.

Assessment of BabyCenter’s efforts:

Positive views:

  • The purchase of standard components like web server, chat software, and application server assisted in targeting users by the age of baby or pregnancy stage.
  • The need for tailored content was addressed by the company through offering weekly emails and personal pages on development stage……………
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