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Stub Hub

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Submitted By emcglory
Words 2080
Pages 9
Running Head: StubHub

Stub Hub was started by Jeff Fluhr and Eric Baker. They found a niche market for their business idea relating to tickets. In early 2004, consumer’s mainstream channel for purchasing tickets was from either a primary ticket seller (venue organizer) or a primary authorized ticket seller like Ticketmaster. If the ticket holder wished to resell their tickets, there was no proper devoted channel to allow this type of transaction in a safe, secure and swift manner. Major ticket reselling activity was distinctly fragmented and existed either in parking lots or as Baker tags it - “moms and pops” market. (Making a Market: eBay, StubHub, and Swaptree, 2009) There was a need for a marketplace or a channel where these ticket holders could meet to buy, sell and trade their inventory, under a properly governed facility. This idea gave birth to StubHub a secondary channel, which enabled fans to buy and sell tickets. Fluhr and Baker both knew that this was an immense market in which they were penetrating, but they needed to conquer it strategically, since other big players like, eBay, Yahoo! and even Ticketmaster were contemplating in penetrating it, due to its high demands.
Sporting and Entertainment events are occurring immensely throughout the year; consumers are searching for seats throughout the hour, from primary channels such as Ticketmaster to fragmented secondary channels like nearby parking lot deals or word-of-mouth marketing of existing ticket. The product that Fluhr and Baker decided to focus on has an enormous market of over $60Billion of sales in just the United States. (Making a Market: eBay, StubHub, and Swaptree, 2009) Such a large and extensive market usually cries for a specific need that the primary markets usually cannot fulfill. The tickets industry is so vast, that it now cries for a secondary market, where existing ticket holders

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