Stub Hub Case Analysis

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StubHub Case 1. There are several forces in the marketing environment that shaped the development of StubHub. The two most substantial forces were technology and competitors. The market for event tickets has greatly changed in recent years. Technology and the internet was extremely crucial in the development of StubHub. These forces essentially transformed the ticket market. The majority of consumers no longer wait in line at outlets to purchase tickets for concerts and sporting events. Rather, tickets are purchased online. Such increasing online purchases led to the dominance of ticket resale websites such as StubHub. Due to rising computer usage and internet access, the average American has the ability to participate in the ticket resale market. Because of technology, scalping has become more accepted and commonplace. These factors led to the development of many ticket resale companies. According to the article, at the time of StubHub’s launch, the market for ticket resellers was very fragmented and full of fraud and unfair pricing. The founders of StubHub aimed to create a more fair and efficient way to compete in the ticket resale market. In doing so, StubHub was able to gain competitive advantage. StubHub was also affected by economic factors in the environment. Both buyers and sellers were looking for fair monetary options in selling and purchasing tickets. StubHub provided this by offering lower rates than the competition in the market for ticket resale. Therefore, StubHub appealed to price conscious buyers and sellers. Political factors likely played a role in the StubHub’s developments as well. Laws and policies involving ticket reselling had to have been taken into account. 2. StubHub uses an e-commerce and direct marketing business model that brings many benefits to both buyers and sellers. For ticket buyers, StubHub provides convenience, privacy,
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