Thursday, October 19, 2006

Is StubHub the Business Model to Compete with eBay?

There have been a small numbers of rumors that eBay is planning to buy StubHub.com, while these are just rumors they do, in my view, point out a chink in eBay's armor. I recently wrote an article for my Associated Content site called: How do you Beat eBay in the Auction business? One Category at a Time! I wrote this before I spent any time looking at StubHub.com so I wanted to expand on my original article here.

StubHub is the poster child for the concept of "One Category at a Time!" or as my friend Graham says "Death by a Thousand Cuts" eBay is in the ticket business but it appears a young vibrant competitor like StubHub is cutting into their upside. StubHub is a ticket site that is doing all the right things and they are making some inroads into eBay's Ticket business. They have made one cut, who is going to make the next 999?

What would happen if others took the same approach as StubHub? It looks like many so called eBay competitors want to be as broad as eBay; that effort will fail. They should, instead, think more about becoming the next eBay Motors (or StubHub since they may be bought by eBay). eBay competitors should "Think Vertically"! Find a category they know well and make a success. Who knows when you become successful maybe eBay will buy you.