Fotolia N.A.: Acting like a Start-Up in a Mature Industry

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CASE STUDY. The Fotolia management team must find ways to grow Fotolia N.A., even as competitors also seek to exploit the « long tail » in the market. The case asks students to develop strategies to generate new revenue in this rapidly changing environment.

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Fotolia N.A.: Acting like a Start-Up in a Mature Industry: Abstract

The microstock photography industry took shape in the early 2000s, when iStockphoto commercialized its online catalogue of images contributed by a community of amateur and semi-professional photographers. This case takes place about four years after iStockphoto’s purchase by Getty Images, an event that signalled a shift of market dominance from traditional stock photo houses to their microstock competitors. The industry has changed dramatically. Three firms (iStockphoto, Shutterstock and Fotolia LLC) control the lion’s share of a mature market, and each dominates a particular segment. The Fotolia management team must find ways to grow Fotolia N.A., even as competitors also seek to exploit the « long tail » in the market. The case asks students to develop strategies to generate new revenue in this rapidly changing environment.

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Teaching notes are available for teachers only. Contact the HEC Montréal Case Centre for more information.

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