Istockphoto Essay

3031 Words Sep 14th, 2012 13 Pages
Case1:
ISTOCKPHOTO.COM: TURNING
COMMUNITY INTO COMMERCE

Abstract
Online community is a particular importance since last dedicates; it is recognized as an important environment for people to communicate and share their interest, knowledge, information and advices, etc all over the world despite the existence of the barrier of time and distance. Turing online community into commerce is as significant way to generate revenue and make income. iStockphoto company paid highest attention on the community based online service. They followed cost leadership approach concerning micro payment strategy. They also focused on providing high quality service, so that customers get benefit from the service and become the loyal customers.
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By the time the founder somewhat shift his idea into commerce. In this report we are going discuss three main issues about istockphot case when community turned into commerce. The first issue addresses the vulnerability of istockphoto giant new and existing competitors. The second issue addresses the conflicts that emerge in the process of growing istockphoto. The third issue addresses how to capizalize the value of istockphoto content. Before addressing these issues we are going to discuss the core value, success factors and the competitive advantages of istockphoto.

1

1. Core Values of iStockphoto
According to the article we found that iStockphoto followed cost leadership strategy. Porter mentioned 3 effective Generic strategies for any company to success: cost leadership, differentiation and focus. iStockphoto´s main competitive advantage is it follows cost leadership strategy. It does not provide any traditional specialized commercial photos. So it does not follow differentiation or focus strategy. It provides high quality standard photos with a very low price. Livingstone and his partners introduced the micropayment strategy in the stock photography business to earn revenues by selling high volume of photos with low and royalty free price. Though they are the pioneer of the microstock industry, they got the privilege from the first mover’s

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