Case Gazelle in 2010

Gazelle in 2010 In late July 2010,Israel Ganot, co-founder, president, and CEO of Gazelle had just successfully completed the Series C round of funding for his company, which had brought in a fresh $ 12 million from three venture capital firms. Pada akhir Juli 2010, Israel Ganot, co-founder, presiden, dan CEO Gazelle baru saja berhasil menyelesaikan putaran pendanaan Seri C bagi perusahaan, yang telah membawa dana segar investasi pihak ketiga sebesar 12 juta US$ dari 3 capital firm. Gazelle, based in Boston, Massachusetts, was a pioneer in the industry it had named "reCommerce". Its business involved buying used consumer electronic devices such a cell phones and digital cameras from individuals, and reselling those items through eBay, wholesalers and other channels. To date, nearly all of its activities were conducted on-line; it acquired goods primarily through its gazelle.com website and resold them primarily through the one-line retailer eBay. In addition to providing monetary value to its customers, it hoped to leverage consumers' seemingly growing preference for environmentally friendly "green" commerce. Gazelle, yang berbasis di Boston, Massachusetts, adalah pelopor dalam industri bernama "reCommerce". Usahanya melibatkan pembelian yang digunakan para konsumen perangkat elektronik seperti telepon seluler dan kamera digital milik individu, dan menjual barang-barang itu kembali melalui eBay, wholesalers dan channel lainnya. Sampai saat ini, hampir semua kegiatan dilakukan secara on-line; mengakuisisi barang terutama melalui website gazelle.com dan menjualnya kembali melalui one-line retailer eBay. Selain memberikan monetary value kepada pelanggan, pihaknya berharap untuk memanfaatkan preferensi konsumen ramah lingkungan untuk menumbuhkan "green" commerce. Gazelle had done well in 2009, roughly tripling in size to $8.3 million, but Ganot felt it was at an inflection point. Gazelle had recently formed partnerships with some large electronics retailers (e.g., Costco, Sears, walmart.com) in an effort to expand the pool of individuals willing to sell their used electronics. While such deals could give a tremendous boost to Gazelle's growth, they also carried some risks. In this context, Ganot wondered how best to allocate his company's newly available financial resources. Options included further developing Gazelle's technology infrastructure, increasing its direct marketing efforts to convince consumers to sell their used devices, or investing heavily in its

partnerships with retailers. There was also a longer-term positioning question : should Gazelle plan to move away from its current model of buying and reselling goods itself, and towards a marketplace model, in which it would enable independent sellers and buyers to conduct transactions? Gazelle telah melakukan penjualan terbaik pada tahun 2009, kirakira 3x lipat dalam ukuran 8.3 juta US$, namun Ganot merasa berada di titik balik. Gazelle baru-baru ini membentuk kemitraan dengan beberapa retailer elektronik besar (misalnya, Costco, Sears, walmart.com) dalam upaya untuk memperluas wadah bagi para indivdu yang bersedia untuk menjual elektronik mereka. Sementara semacam penawaran bisa memberikan dorongan luar biasa untuk pertumbuhan Gazelle, hal tersebut juga membawa beberapa risiko. Dalam konteks ini, Ganot bertanya-tanya bagaimana cara terbaik untuk mengalokasikan ketersediaan sumber daya keuangan baru bagi perusahaannya. Pilihan pengembangan lebih lanjut infrastruktur teknologi Gazelle, meningkatkan upaya pemasaran langsung untuk meyakinkan konsumen agar menjual perangkat yang digunakan mereka, atau investasi kemitraan besarbesaran dengan retailer. Ada juga pertanyaan positioning jangka panjang : Dapatkah rencana Gazelle untuk berpindah dari membeli dan menjual kembali barang-barang itu sendiri seperti model saat ini, dan menuju marketplace model, di mana memungkinkan penjual dan pembeli secara independen melakukan transaksi?

Company Background Ganot and co-founder Rousseau Aurelien independently conceived of the idea that became Gazelle based on their personal experiences of dealing with their used electronic devices (see Exhibit 1 for biographical information of Ganot, he did not want to throw away a used Blackberry (smart phone). He visited a local retailer that offered an electronics recycling service, but was surprised to learn they were going to charge him to recycle it. Having worked at eBay, Ganot knew the phone had value and could be sold. He walked away thinking, “this is never going to work, consumers are not going to pay to recycle.” Ganot dan co-founder Rousseau Aurelien secara independen memahami ide yang dijadikan Gazelle berdasarkan pengalaman pribadi mereka berurusan dengan perangkat elektronik yang mereka gunakan (lihat Exhibit 1 untuk informasi biografis Ganot, ia tidak ingin membuang Blackberry yang digunakannya (smart phone). Ia mengunjungi retailer

lokal yang menawarkan layanan daur ulang elektronik, tetapi sangat mengejutkan saat mereka mempelajari biaya daur ulang itu. Setelah bekerja di eBay, Ganot tahu bahwa telepon memiliki nilai dan bisa dijual. Dia melangkah sembari berpikir, "ini tidak akan pernah berhasil, konsumen tidak akan membayar untuk daur ulang." Ganot continued to think about the potential value in used consumer electronics and over time he developed a motivation to build a business around rewarding consumers for smart consumption. A few years later he moved to Boston and connected with Aurelien who had begun to develop a similiar plan. The two enterpreneurs launced Gazelle in early 2006 with the vision to redefine the consumption of consumer electronics. Ganot terus berpikir tentang nilai potensial dalam menggunakan konsumsi elektronik dan dari waktu ke waktu ia mengembangkan motivasi untuk membangun penghargaan bisnis di seluruh konsumen untuk konsumsi pintar. Beberapa tahun kemudian ia pindah ke Boston dan terhubung dengan Aurelien yang sudah mulai mengembangkan rencana yang sama. Kedua pengusaha meluncurkan Gazelle di awal tahun 2006 dengan visi untuk mendefinisikan konsumsi dari konsumen elektronik. Together, Aurelien and Ganot launched under the name “Second Rotation.” The founders’ early plan was to approach major retailers, such as Best Buy and Wal-Mart, and convince them to offer a trade-in service that paid customers for tuning in their used, but still working electronic device. Second Rotation would buy the devices from the retailers and sell them on the used market. The first years was difficult. Ganot and Aurelien approached retailers, but the retailers were not ready to move. Bersama-sama, Aurelien dan Ganot meluncurkan dibawah nama "Second Rotation." Rencana awal para pendiri adalah mendekati retailer besar, seperti Best Buy dan Wal-Mart, dan meyakinkan mereka untuk menawarkan layanan tukar tambah yang dibayar pelanggan untuk tuning yang mereka gunakan, namun masih mengerjakan perangkat elektronik. Rotasi kedua akan membeli perangkat dari retailer dan digunakan untuk menjualnya di pasar. Tahun-tahun pertama ini sulit. Ganot dan Aurelien mendekati retailer, tetapi ritel tidak siap untuk beralih. At the time, both believed that a green movement was underway and some consumers were beginning to question their overall impact on the environment and might consider ways to reduce it. They came to realize, however, that few business services aimed at taking advantage of this

movement had evolved. The idea of Second Rotation seemed to be ahead of its time. Pada saat itu, keduanya percaya bahwa gerakan hijau sedang berlangsung dan beberapa konsumen mulai mempertanyakan dampak keseluruhan terhadap lingkungan dan mungkin mempertimbangkan caracara untuk mengurangi itu. Mereka menyadari, bagaimanapun, bahwa layanan bisnis yang ditujukan untuk mengambil keuntungan dari gerakan ini telah berevolusi. Ide Second Rotation tampaknya berjalan untuk saat ini. In 2007, after returning from yet another meeting with a major retailer that rejected their idea, Ganot and Aurelien decided to strike out on their own. They decided to go directly to consumers : develop a website to solicit used electronics from them and then sell those devices themselves on eBay. Second Rotation launched the website later that year and soon had products coming in the door. In mid-2008, Second Rotation created the name “Gazelle” for branding and operational purposes : its legal name remained “Second Rotation” while customers only saw “Gazelle”. Pada tahun 2007, setelah kembali dari pertemuan lain sebelum retailer besar yang menolak ide mereka, Ganot dan Aurelien memutuskan untuk strike out dari idenya sendiri. Mereka memutuskan untuk langsung ke konsumen : mengembangkan situs web untuk mengumpulkan elektronik bekas dari mereka dan kemudian menjual alat-alat sendiri di eBay. Second Rotation meluncurkan website akhir tahun itu dan segera mendatangkan produknya di depan pintu. Pada pertengahan 2008, Second Rotation menciptakan nama "Gazelle" untuk branding dan tujuan operasional : Nama hukumnya tetap "Second Rotation" sementara pelanggan hanya melihat "Gazelle". Gazelle had initially launched with funding from angel investors. In 2007 and again in 2008 the company had received venture capital funding totaling $23 million. Gazelle awalnya diluncurkan dengan dana dari investor penolong. Pada tahun 2007 dan lagi pada tahun 2008 perusahaan telah menerima dana venture capital sebesar 23 juta US$.

The Business Opportunity

In recent decades there had been a significant increase in the number of consumer electronic product sold. Devices such as computers, cell phones, and digital cameras which essentially had not existed in earlier generations had become ubiquitous by 2010. (see Exhibits 2 dan 3 for historical sales data on consumer electronic devices). Dalam beberapa dekade terakhir telah terjadi peningkatan yang signifikan dalam jumlah konsumsi produk elektronik yang dijual. Perangkat seperti komputer, ponsel, dan kamera digital yang pada dasarnya tidak ada di generasi sebelumnya menjadi dapat ditemukan dimana-mana pada tahun 2010. (lihat Exhibits 2 dan 3 untuk historis data penjualan pada konsumen perangkat elektronik). Historically, consumers used their electronic devices for a period of time, but when they finished using them they either threw away in the trash or stored them in their home. Very few devices were recycled or transferred to another consumer to use. Gazelle had identified four major macroeconomic forces that were leading consumers to look for other options for the disposal of the electronic devices they no longer needed. Secara historis, konsumen menggunakan perangkat elektronik mereka untuk jangka waktu tertentu, tetapi ketika mereka selesai menggunakan mereka juga membuang di tempat sampah atau menyimpannya di rumah. Sangat sedikit perangkat yang didaur ulang atau dipindahkan ke konsumen lain untuk dapat digunakan. Gazelle telah mengidentifikasi 4 gaya makroekonomi utama yang mengarah ke konsumen untuk mencari opsi lain pembuangan perangkat elektronik ysng tidak lagi mereka butuhkan. Financial The downturn in the general economy which began in 2007 and accelerated in 2008 had caused consumers to be more careful about how they spent and managed their money. Unemployment levels in the U.S. increased significantly and many employed individuals feared losing their jobs. This led to an environment of belt tightening in which in which it did not make sense to store or throw away a device that could be sold for cash. Further, the acquisition and use of used products was increasingly seen as socially acceptable. Online retail business such as eBay and Amazon had developed channels through which consumers could more easily estimate the value of devices they owned and also buy and sell used goods.

Keuangan Melemahnya general economy yang dimulai pada tahun 2007 dan dipercepat pada tahun 2008 telah menyebabkan konsumen lebih berhati-hati tentang bagaimana mereka menghabiskan dan mengelola uang mereka. Tingkat pengangguran di AS meningkat secara signifikan dan banyak orang yang bekerja takut kehilangan pekerjaan mereka. Hal itu mengakibatkan lingkungan pengencangan ikat pinggang di mana tidak masuk akal untuk menyimpan atau membuang perangkat yang dapat dijual menjadi uang tunai. Selanjutnya, akuisisi dan penggunaan produk yang digunakan adalah semakin dipandang untuk dapat diterima secara sosial. Bisnis ritel online seperti eBay dan Amazon telah mengembangkan channel yang mana konsumen bisa lebih mudah memperkirakan nilai perangkat yang mereka miliki dan juga membeli dan menjual barangbarang bekas. New Product Introductions Technological advances following Moore’s Law (Moore’s Law referred to Intel Corporation’s founder Gordon Moore’s 1965 assertion that the number of transistors that manufactures could place on a single integrated circuit chip would double every two years. The rate oftechnological advances had generally Moore’s Law into 2010) and developments in broadband wireless communications infrastructures enabled manufactures to introduce a wide variety of new costumer electronic products at an ever increasing pace. These latest generation products came with new features and faster performance. At the same time, the previous generation products remained highly functional with significant remaining useful life. Consumers who valued owning the latest devices looked to upgrade soon after new product lauches. Other consumers were content to use nearly new product launches. Other consumers were content to use nearly new products that could be purchased for a lower cost from consumers who upgraded earlier. Environmental

The idea