Deal of the day at Cherry.ee

Subject area – Marketing, branding, strategic management, online retailing, and entrepreneurship. Student level/applicability – Postgraduate courses in: strategic management;marketing management (branding); andentrepreneurship. Case overview – The case describes the founding and the first year of an Estonian internet start-up, the “deal-of-the-day” web site Cherry.ee. The focal topic of the case is the analysis of alternative scenarios for the further development of the company after the first year in business: selling the company, entering into a merger with similar businesses, or continuing to develop the brand independently. The case gives an example of creating a new market, introducing a new business model and launching a brand with substantial use of social media marketing. The successful business model was quickly copied by a lot of followers creating a fierce competitive environment and raising a question of sustainability of the competitive advantage. The case provides an opportunity to discuss h...