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Harvard Case - "Lather, Rinse, Repeat": FeedBurner's Serial Founding Team

""Lather, Rinse, Repeat": FeedBurner's Serial Founding Team" Harvard business case study is written by Noam Wasserman, Eric J Olson. It deals with the challenges in the field of Entrepreneurship. The case study is 17 page(s) long and it was first published on : Feb 20, 2009

At Fern Fort University, we recommend that FeedBurner, having achieved significant success with its initial product, should strategically leverage its entrepreneurial team's expertise and the established platform to pursue a path of business model innovation. This involves exploring new avenues for growth and value creation by expanding into adjacent markets, developing complementary products, and exploring strategic partnerships. This approach will allow FeedBurner to capitalize on its existing strengths, tap into new revenue streams, and solidify its position as a leading player in the evolving digital media landscape.

2. Background

FeedBurner, founded by a serial entrepreneurial team, achieved remarkable success in the early 2000s by providing a user-friendly platform for podcasters and bloggers to manage their content and engage with their audiences. The company?s core product, a free RSS feed management service, rapidly gained popularity, attracting a vast user base and establishing FeedBurner as a dominant force in the nascent podcasting and blogging ecosystem.

The key protagonists in this case are:

  • Eric L. Schlesinger: A seasoned entrepreneur with a history of successful ventures, including the creation of a popular online game and the development of a successful web advertising platform.
  • Dick Costolo: A skilled engineer and entrepreneur with experience in building and scaling successful web applications.
  • Robert Scoble: A prominent blogger and early adopter of new technologies, who played a crucial role in promoting FeedBurner?s product and building its community.

3. Analysis of the Case Study

FeedBurner?s success can be attributed to several key factors:

  • Disruptive Innovation: FeedBurner?s free RSS feed management service disrupted the traditional media landscape by empowering individuals and businesses to easily distribute and manage their content.
  • Entrepreneurial Management: The founding team?s experience and drive enabled them to quickly adapt to evolving market demands and seize opportunities.
  • Growth Strategy: FeedBurner?s focus on user acquisition and engagement through a free, user-friendly platform fostered rapid growth and established a strong market position.
  • Technology and Analytics: The company?s platform leveraged cutting-edge technology and analytics to provide valuable insights to users and advertisers, enhancing the user experience and generating revenue opportunities.

However, FeedBurner faced challenges as the digital media landscape evolved:

  • Competition: The emergence of new players and the increasing sophistication of existing platforms created competitive pressure.
  • Monetization: The free model, while effective for user acquisition, posed challenges in generating sustainable revenue.
  • Strategic Direction: The company needed to define a clear path for future growth and expansion beyond its core RSS feed management service.

4. Recommendations

To address these challenges and capitalize on future opportunities, FeedBurner should pursue a strategy based on business model innovation:

  • Expand into Adjacent Markets: Leverage the company?s existing platform and expertise to enter adjacent markets, such as social media management, content marketing, and digital advertising.
  • Develop Complementary Products: Create new products that complement the existing RSS feed management service, such as analytics tools, content creation software, and monetization solutions.
  • Strategic Partnerships: Form strategic partnerships with other companies in the digital media ecosystem to expand reach, access new technologies, and create joint value propositions.
  • Monetization Strategies: Explore various monetization strategies, such as premium features, subscription models, advertising, and data analytics services.
  • Invest in R&D: Continuously invest in research and development to stay ahead of technological advancements and develop innovative solutions.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies: FeedBurner?s core competencies lie in its technology platform, user base, and entrepreneurial team?s expertise in the digital media space.
  • External Customers: The company?s target audience includes bloggers, podcasters, content creators, and businesses seeking to engage with their audiences online.
  • Competitors: FeedBurner faces competition from established players like Google, Facebook, and Twitter, as well as emerging startups offering similar services.
  • Attractiveness: The digital media market is a rapidly growing and highly attractive sector with significant potential for revenue generation.

6. Conclusion

By embracing business model innovation, FeedBurner can leverage its existing strengths, adapt to evolving market demands, and secure its position as a leading player in the digital media landscape. This approach will enable the company to generate new revenue streams, expand its reach, and create long-term value for its users and stakeholders.

7. Discussion

Alternative strategies include:

  • Acquisition: FeedBurner could seek acquisition by a larger company with complementary products and resources.
  • Focus on Niche Markets: The company could focus on specific niche markets, such as podcasting or video content, to achieve greater market penetration.

Risks associated with the recommended strategy include:

  • Competition: Intense competition from established players and emerging startups could hinder market penetration and profitability.
  • Technological Change: Rapid technological advancements could render existing products and services obsolete.
  • Execution: Successfully executing the recommended strategy requires significant resources, expertise, and effective leadership.

8. Next Steps

To implement the recommended strategy, FeedBurner should:

  • Conduct Market Research: Thoroughly assess the target markets, competitive landscape, and potential opportunities for growth.
  • Develop a Business Plan: Create a detailed business plan outlining the specific products, services, and strategies for achieving growth and profitability.
  • Secure Funding: Seek funding from venture capitalists, angel investors, or other sources to support the development and launch of new products and services.
  • Build a Strong Team: Recruit and retain talented individuals with expertise in product development, marketing, sales, and business operations.
  • Monitor Progress: Continuously monitor progress and make adjustments to the strategy as needed to ensure success.

By taking these steps, FeedBurner can capitalize on its entrepreneurial spirit, leverage its established platform, and achieve continued success in the dynamic digital media landscape.

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Case Description

"Is this the right time or is it still too early?" Dick Costolo wondered as he reflected on the latest acquisition offer. He had been building FeedBurner with his three co-founders for almost four years and was staring at the details of an acquisition offer from Google. He and his co-founders had founded three prior ventures together, each of which had had increasingly attractive outcomes, but none of which had reached their full potential. The number on the table from Google was a big one. Should the deal be completed, it would be the biggest win the founding team had ever had. However, was this the right time to exit? If Costolo didn't think so, would he be able to convince his co-founders who all had different personal risk profiles? This was going to be the biggest decision in the life of FeedBurner and its co-founders.

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