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Case Study 1 31

b. Evaluate the text’s definition of job security. Is it ef- d. Do you think technical skills (accounting profi-
fective? If you think not, offer a better definition of ciency, financial analysis proficiency, etc.) pro-
job security. vide job security? Why or why not? Do you think
c. As a team, do you agree that improving your you would have answered this question differ-
skills on the four dimensions in the Collaboration ently in 1990? Why or why not?
Exercise Questions will increase your job security?

CaSe Study 1

zulily

On November 15, 2013, zulily, a Seattle corporation, issued 45 percent of its sales occur over mobile devices, as mothers
its initial stock (i.e., went public) at $22 a share. By the end churn through the day’s specials while they sit in playgrounds,
of the day, the stock was trading at $38, and 4 months later it in cars waiting for kids at soccer practice, or anywhere else
reached $62, nearly tripling its initial price. At $62, the holdings young mothers have a break long enough to shop on their mo-
of the company’s chairman, Mark Vadon totaled more than bile devices.
$2 billion. One of your goals for this class should be to learn to assess,
Before dismissing this as just another successful public of- evaluate, and apply emerging information technology to busi-
fering, consider the company. What is its business model? A ness. Seem like an empty platitude? Not to Mr. Vadon, who
high-tech company offering the latest gee-whiz technology? A turned that exact principle into $2 billion . . . so far.
new tablet? A new Facebook competitor? Another way of shar-
ing pictures? No, no, no, and no. zulily sells to mothers: pri- The zulily Business Model
marily children’s clothes and toys, but also women’s clothes, zulily conducts flash sales of children’s and women’s cloth-
accessories, and décor items. The oldest and most traditional ing and other items of interest to women. Sales open at
forms of retail. So what is the excitement? Cofounders Mark 6 AM Pacific time each day and last 72 hours. Customers
Vadon and Darrell Cavens found a way to harness informa- find brand-name merchandise intermingled with hard-to-
tion technology to provide an entertaining shopping experi- find boutique products. zulily uses the term curated sale to
ence to mothers, one that offers name-brand goods as well as mean the sale of items specifically selected and grouped by
unique and difficult-to-find off-brands and often sells them their shopping experts to be exciting to women. Because
at substantial discounts. According to the zulily prospectus, these curated sales provide interesting variety, women

Figure 1-8
zulily Merchandise Variety