A Case of Creative Positioning of an E-Business Strategy

Dawson’s Antiques is a 23-year-old small antique business. With the emergence of online
auction sites, the owner, Linda Dawson, foresaw the need not only to accommodate the
Internet in their business strategy but also to take advantage of it in order to survive as a
business. This came with the recognition that many of her clients were exposed to a wide
range of antiques from competitors at online auction sites at prices lower than she was
charging.
Meanwhile, Sotheby’s, then a growing online auction site (and now one of the largest online
auction sites), realized the merit of increasing its auction inventory to attract a bigger
audience on the Internet. It revised its Internet strategy by opening its Web site, sothebys.com,
to smaller dealers and auction sites instead of competing directly with its competitors in the
online auction business. With this approach, Sotheby experienced an exponential growth in
its inventory, which attracted a bigger market.
Dawson’s enlistment in Sotheby’s was instrumental in expanding its client base. To make
things easier, Sotheby’s not only provided the Web site for its members (Dawson’s included)