In this modern society, ecommerce has been widely used all around the world. However, there are still some large ecommerce companies that are unable to maintain themselves through ecommerce. There are some failures include Kozmo.com,Flooz.com,Webvan.com and Boo.com.
Boo.com was launched in 3rd November 1999. The funding is around $125million which was invested by the investors such as Benetton and Bernard Arnault, the chairman of LVMH. At that time, Boo.com was a famous ecommerce site with high profile. After some times, Boo.com was flopped.
Boo.com failed due to not well planning before doing so much. They just established online shops in many countries without proper considerations. Besides that, Boo.com also faced poor web design as well as usability. All the visitors are not able to reach their desired destination once they click due to annoying animated graphic. Moreover, the visitors are being limited to the transaction they made to three per twenty minutes which will discourage them to shop at Boo.com again.
On the other hand, Boo.com also having bad marketing. They have marketed themselves as premium products with an expensive charges. This is one of the causes of failure because most of the people buy online is attracted by the cheaper price.
Furthermore, the bad planning in several fields have causes Boo.com to fail. The founder
s are too ambitious over their business planning and affected their quality of service. They wanted to dominate the market once Boo.com was started and did not want to start from the beginning(small). The founders also did not have brick and mortal experience.
Inefficiency in managing the capital is the cause of failure. They spent $125million just within the six months in order to dominate the market without proper planning. Therefore, they had faced some issues problems such as languages. They involved huge amount for their monthly maintenance fees for 3D photograph, employees benefits and technology costs.
Perhaps, if Boo.com had given good customers experience, convenience as well as speed of process that would won the customers' heart they would be sustained in the ecommerce now.
Sources from:
Boo.com was launched in 3rd November 1999. The funding is around $125million which was invested by the investors such as Benetton and Bernard Arnault, the chairman of LVMH. At that time, Boo.com was a famous ecommerce site with high profile. After some times, Boo.com was flopped.Boo.com failed due to not well planning before doing so much. They just established online shops in many countries without proper considerations. Besides that, Boo.com also faced poor web design as well as usability. All the visitors are not able to reach their desired destination once they click due to annoying animated graphic. Moreover, the visitors are being limited to the transaction they made to three per twenty minutes which will discourage them to shop at Boo.com again.
On the other hand, Boo.com also having bad marketing. They have marketed themselves as premium products with an expensive charges. This is one of the causes of failure because most of the people buy online is attracted by the cheaper price.
Furthermore, the bad planning in several fields have causes Boo.com to fail. The founder
s are too ambitious over their business planning and affected their quality of service. They wanted to dominate the market once Boo.com was started and did not want to start from the beginning(small). The founders also did not have brick and mortal experience.Inefficiency in managing the capital is the cause of failure. They spent $125million just within the six months in order to dominate the market without proper planning. Therefore, they had faced some issues problems such as languages. They involved huge amount for their monthly maintenance fees for 3D photograph, employees benefits and technology costs.
Perhaps, if Boo.com had given good customers experience, convenience as well as speed of process that would won the customers' heart they would be sustained in the ecommerce now.
Sources from:
1 comment:
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