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Strategic Analysis of a New E-commerce Platform
A new online platform, 'ArtisanConnect,' aims to connect independent craftspeople with buyers. To launch, they offer craftspeople a free storefront and zero transaction fees for the first year. For buyers, they offer a 10% discount on their first purchase. Despite these incentives, after six months, the platform has very few active buyers and craftspeople are not seeing sales, leading many to abandon their storefronts. Using your understanding of how platforms that link two distinct groups of users operate, identify the core challenge 'ArtisanConnect' is facing and explain why their initial strategy failed to overcome it.
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Introduction to Microeconomics Course
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