(13 pages of text)
iVillage.com was a successful Web site that served as a point of entry to numerous sites (or channels) targeted to a female audience. With a solid strategic vision and a network structure that provided consistency and control of the customer experience, the founders were rewarded by the site's favorable online presence. The company's business strategy relied on creating revenue through sponsorship and advertising. As the marketing industry had identified women as their single largest target category, iVillage.com had little difficulty in successfully pursuing innovative sponsorships and creative advertising. The pursuit for women's buying power also meant, however, that iVillage.com faced competition -- for both audience numbers and advertising dollars -- from numerous online and offline businesses. More women were accessing information online, driving the demand for more sophisticated Web sites. At the same time, iVillage.com needed to capture the audience that was currently offline and those who were about to move online. The founders must determine how to proceed in the face of increased competition, and how to achieve profitability.
United States, Small, 2000
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