Chapter 16 - Minicase 1

The Australian Fishing Community

In preparation for answering the questions, review the Australian Fishing Community web site.

1. Why is this community considered an Internet Community?

   Australian Fishing Shop can be considered part of the Internet Community because it offers resources to its members beyond buying and selling products and services. AFS is a successful part of the community because it experiences a large number of web visitors: 1.6 million visitors a month.

2. How does the community aspect of the AFS web site facilitate revenue?

   AFS sells advertising space on its web site to related industries. 1.6 Million visitors a month is a lot of “eye balls”- the rate base for advertising fees on the Internet.

3. What is the survival CSF (critical success factor) of this company?

   The CSF for Australian Fishing Shop is that it offers specialized fishing information and fishing related products. It is easy to navigate and carries enough depth of information to keep the web site attractive for members of the community to return many times. A bonus is that it emphasizes Australia as a fishing heaven.

4. What is the advantage of being a referral service? What is the disadvantage?

   The advantage of operating as a referral service is that Australian Fishing Shop carries no inventory, making it possible to keep operating capital requirements low. Updating their portal content is a large part of their operating costs.

   The disadvantage is that AFS revenue is contrained to the comparatively small commissions paid by the real product and services providers.

5. Compare the services offered at the AFS Web site with services offered by companies in other countries such as: daytickets.co.uk, Sage, and Bass Pro Shops.

   Australian Fishing Shop does look different. It provides more content and lots of links. AFS appers to be more current because it updates more frequently. It builds on its advantage - emphasizing Australia as a fishing paradise.