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The Development Path of an Internet Venture:The Case of Internet Auction Company, Ltd.
[Abstract]
This case describes key development challenges patterns as experienced by Internet Auction Company, Ltd. from the startup stage through IPO to the sale to eBay. In 1997, Mr. Hyuk Oh saw a business opportunity in the Internet allowing two-way communications. Around that time, the success stories of eBay Onsale in the United States were good stimuli to his startup of an auction site. He opened the Website in April 1, 1998 after four months of development efforts. While experiencing financial difficulties due to the lack of initial acceptance of Internet auction, Mr. Oh finally succeeded in raising 2 billion wons from Will-bes Company. By May 2000, Internet Auction Co. had 950,000 registered members, reached the average rate of 185,000 transactions per day. Currently an eBay company, Internet Auction Co. continues to pursue new auction systems substitute distribution systems for the future with a renewed entrepreneurial spirit.