1. Website Market Positioning

7. The intensity of user relationship depends on exchanging value for information Intensity of Customer Relationship Exchange, Depth and Use of Customer Information “ The key is building trust — any information you give me is going to be used to generate value for you. If you give me a little bit of information, I’ll give you some helpful advice or recommendations… The next time I ask you for information, you’re willing to give me a little bit more about yourself.” - John Hagel, author of Net Gain and Net Worth Casual Familiar Intimate

10. The combination of intensity of relationship and completeness of service offering drive customer loyalty — and hence, the sustainability of a value proposition Web Market Positioning Casual Familiar Intimate Registration/Commerce User Profiles Comprehensive Multiple Services Single Service Completeness of Service Offering Intensity of Relationship Increased Completeness Raises Barriers to Entry Heightened Intensity Raises User Switching Costs Greater sustainability Greater loyalty Greater differentiation

11. An evolution is taking place in the race to attract eyeballs. Web players will leapfrog one another as some establish more compelling value propositions that make other positions unstable Competitive Evolution on the Web: A Game of Leapfrog Casual Familiar Intimate Registration/Commerce User Profiles Comprehensive Multiple Services Single Service Completeness of Service Offering Intensity of Relationship Insurance carrier site (allows purchase) Insurance carrier site (lists agents, fees) Insurance industry site (lists agents, fees) Quick Quote (compare and purchase from different carriers) Integrated personal finance site Future car buying network Future personal health network Future personal finance network Future insurance network (proactive recommendations) Operating at “Web speed,” players may also leapfrog their own position Example: Palm Palm VII Example: MSN proprietary content MSN as separate services MSN as portal ILLUSTRATIVE

14. Another key challenge is that a site may be positioned differently among different user groups. When integrated, positioning among one group can feed off of and contribute to success with another Example of Different Positioning among Different User Groups: xxx.com Comprehensive Multiple Services Single Service Listeners Artists Completeness of Service Offering Casual Familiar Intimate Registration/Commerce User Profiles Intensity of Relationship Listeners receive free downloadable music, e-commerce opportunities, related news/reviews Artists receive Web page hosting, promotions, popularity stats and many community features — all free Strong relationships with artists propels buzz among listeners and improves listener relationships — a virtuous cycle

15. Some Web plays have established more positions that are more sustainable than others by delivering completeness of offering and intensity of relationship Comprehensive Multiple Services Single Service Completeness of Service Offering Casual Familiar Intimate Registration/Commerce User Profiles Listeners Intensity of Relationship Note: Like sites may have more than one position corresponding to different user groups. Shown here is the position for each site’s largest user group Consumers 7

16. The User Satisfaction Metrics help XXX measure the bottom-line impact of the XXX site User Satisfaction Metrics Rationale ILLUSTRATIVE