What helped Blue Mountain Cards survive the dot com bubble
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by: al.sones
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Word Count: 459
What is Blue Mountain Cards? It all started back when ecards became big in the 1990s. Im not sure exactly how they built a business model on the idea of giving away a free ecard, but they did. What you must remember is that advertising revenue models were seen as very acceptable back then. This has no changed with people wanting to know where the real revenue is coming from. However, with web 2.0, you could argue that its started all over again.
Ecards are a difficult business space for me to understand. The business model is essentially one where you are killing another business model, the paper greeting cards space. It seems like the classic case of doing something through technology that was previously manual. But I dont think its that simple. eCards are not exactly the same product as paper greeting cards. Paper cards come from a store and require you to mail them. Electronic cards are bought online and never touch paper. In this way, its a real product transition. So we are actually seeing technology change the wants and desires of the buyer here. This is not unique, just look at tvs, video games or any other electronic based market.
How exactly did blue mountain cards dig out of this hole? First, Blue Mountain Cards had a big lead going into the game. They had a good plan. It seems like the executives at Blue Mountain Cards new they were onto something big, but that it wouldnt last. So the company was sold while things were still really really hot in the dot com sector. What a move that was.. Looking back, there are many things I wish I had done differently.
How is that in 2008 Blue Mountain Cards is still a going concern? You could argue that the management team at Blue Mountain Cards were the luckiest people on earth to have gotten such a valuation at such a time when that was seen as appropriate. However, these were experience people who were also making a serious move in a serious industry. The greeting card business is huge. Flawed business model or not, Blue mountain cards made a big dent in a market worth billions. I think this accounts for why they are here today. They built a brand and have a name worth something. The part that is not text book is how Blue Mountain Cards got out at the top of the market. We should all be so lucky in our careers.
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