edf40wrjww2CF_PaperMaster:Desc
BY
SUMI
ABOUT STUBHUB
Stubhub is an online ticket trading website which allows people to buy and sell their tickets online. The tickets range from major sporting events like NBA, NFL, WWE etc. to music concerts and live events. The company, presently acquired by e-bay started small but because of its excellent business model, became the major competitor of e-bay and largest ticket trading website. The Stubhub was founded by Eric Baker and Jeff Fluhr, two 1st year M.B.A students at Stanford Graduate School of Business. Their idea was to create a bridge between a buyer and seller so that trading of tickets could be done in an efficient way. The company was successful in creating a good environment and minimizing the harassment caused to fans by ticket scalpers. As company progressed, it diversified horizontally. Presently, Stubhub has contract with some major sports teams and sells their tickets online. The company has strength of 200 employees, a prime office location in San Francisco, seven satellite offices and two call centers. From 2004 to 2005, Stubhub tripled its volume to $200mn worth of tickets sold, generating $50mn in commission.
BUSINESS MODEL
The USP of Stubhub's business model is its simplicity. As compared to its competitors, the Stubhub does not charge its sellers for listing the tickets. It lets its sellers decide their selling price and even to modify it. The listing of tickets closes 4-5 days before event so that seller gets ample time to ship the tickets and buyer gets them on time ...