Opportunistic Bargains: Exploring an Unusual B2C E-Commerce Model

Opportunistic Bargains

OPPORTUNISTIC BARGAINS:

EXPLORING AN UNUSUAL B2C E-COMMERCE MODEL

Brian Harmer* and Pak Yoong

School of Information Management

Victoria University of Wellington

New Zealand

*Contact Author: brian.harmer@vuw.ac.nz

ABSTRACT

This case study explores the thinking and motivation behind the creation of an atypical ecommerce business model, and the aspirations of the entrepreneurs behind this creation. Unlike

most B2C e-commerce providers, a small New Zealand company called Firstin, selling products

of a mostly technological nature, does not give its customers the opportunity to fulfil a specific

time-bound need. Each day, with no forewarning of what is to be sold, it offers a small range of

products at a price that is usually lower than is available at any other local provider. After

twenty four hours, or if the product is sold out earlier, the offer lapses, and customers must wait

until the next day for a new and different set of bargains. The operational business model

depends upon the availability of a range of attractively priced products of relevance to its chosen

market, and a significant body of loyal watchers with the ability to make opportunistic purchase

decisions if a particular offering meets a need at an attractive price. In the middle of its fourth

year in business in the small New Zealand market, this organization continues to evolve, but

retains the key features of its unusual operational business model. This research asks what

lessons the Firstin case offers that will benefit other entrepreneurs who propose to invest in a

B2C e-commerce venture on the basis of similarly unconventional business models.

KEYWORDS

E-commerce, B2C, business model.

INTRODUCTION

One of the big issues faced by organisations engaging in B2C e-commerce is to find ways of

differentiating their business from that of their competitors. This approach is especially critical in

the situation where entrepreneurs with a bright idea...