The founder of “The Blonde Salad”, the world’s most popular fashion blog, was considering the ways to monetize her blog along with her shoe line “Chiara Ferragni Collection”. The founder, Chiara Ferragni a year earlier, with her team made a decision to change her blog into an online lifestyle magazine and to create its positioning as a high-end brand.
This decision reflects that the blog contemplate to only cooperate with a few luxury fashion advertisers, significantly declining the blog’s revenues. Ferragni considered changing the revenue-generating model by incorporating an online market place within “The Blonde Salad”, but what would be the most appropriate model and strategy that would lead to attain her objective? Should the company’s unit “Chiara Ferragni Collection” with entirely different hierarchy, be merged with “The Blonde Salad” or would it be better to run it separately?