Etsy Crafting a Turnaround Ranjay Gulati Luciana Silvestri Monte Burke 2021
Financial Analysis
Etsy is a platform for creating, buying, and selling unique and handmade products, mainly crafted items. I joined Etsy in 2009 as a member and soon became a seller on the platform. In this essay, I will discuss my personal experiences and observations related to Etsy’s recent turnaround. Etsy is facing serious challenges in recent years due to its rapidly changing business model. Customers have shifted from physical shopping to online shopping, and the demand for handmade items has fallen. pop over to this web-site
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(10-15 minutes) – Provide an overview of the company, its current situation, and its goals – Explain the challenges facing the company Section 1: Understanding the Situation (15-30 minutes) 1.1 Identify the Problems (3-5 minutes) – High turnover rate: Employees are leaving the company. – Limited resources: Insufficient funds for growth – Competitive advantage (product, pricing, customer service) has been eroded:
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For those who don’t know, Etsy is an online marketplace that is often associated with artisans and independent makers. see this here That said, Etsy’s business model has been facing its fair share of criticism lately, which has put their revenue numbers in question. They were already facing some competition from Amazon and are facing pressure from both online and offline retailers who are starting to see Etsy as an obstacle to their own growth. I have been following the development of Etsy’s business for a long time and,
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Amidst the COVID-19 crisis, it is common for people to adopt self-quarantine measures and cancel their regular businesses. When the pandemic hit, Etsy, an online marketplace of unique handmade or vintage items, saw a sudden drop in sales, affecting over 1 million small businesses and 225,000 sellers. In a turnaround, Etsy worked to make their platform more user-friendly, simplified pricing, and provide customization options, resulting in an 84% increase
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When Etsy launched Crafting a Turnaround, the stock had taken a hit. As we’ve discussed, the first-mover advantage isn’t the same for Etsy now as it was for Etsy in 2011, when the company had 156 retail stores, 1,500 sellers, and 14 million unique visitors. Since then, the company has grown, but not much: it now has only 76 stores and only 1,275 sellers. This means that E
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“I’ve been working for Etsy for four years now and I can’t recall a more challenging year,” said Ranjay Gulati, who is chief customer officer at the online marketplace for independent artists and craftspeople. “In 2020 we saw a 60% drop in sales as consumers shifted online, we had to lay off 40% of our staff, and the marketing function was severely impacted.” Gulati and her team had to come up with solutions in a hur