Compete by Changing

How Shutterfly Succeeded on a New and Larger Playing Field

Jim Champy

Jeffrey Housenbold became CEO of Shutterfly, based in Redwood City, California, in January 2005. At the time, the company, which Dan Baum and Eva Manolis had founded in December 1999, billed itself as just an online photo finisher. But within two years, Housenbold had turned Shutterfly into something much bigger and smarter—an Internet-based social-expression and personal-publishing service that helps consumers “share life’s joys, stay connected, and preserve memories.” Shutterfly still prints customers’ photographs from old-style 35mm cameras as well as ...

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