Electronic Business Managment
The Failure of Boo.com
Boo.com, which was founded by two Swedish entrepreneurs: Kajsa Leander, a fashion model, and Ernst Malmsten, launched during the end of 1999. It was an e-tailing site which positioned as fashion merchandise seller (B2C).
Boo. Com mainly sold its products. The source of income was only the sales of its products online. There were no links to small boutiques where customers could go to by the products before it recast itself. The scope of Boo.com was clothes only.
Strategy – Grandiose & Visionary
It aimed itself as an e-tailing that sells fashion merchandise in several different markets globally, with a final goal to become a global brand. It had offices in several prominent fashion markets including London, New York, Munich, Stockholm, Paris and Amsterdam. It aimed to leverage the power of the Internet by serving brands that were local powerhouses or global superstars to the consumers in these markets. Its company website was launched in different countries simultaneously and provided access to consumers in different languages and transact business in multiple currencies. The problem of Boo.com is that it was too visionary. The vision was impressive but too complicated to be practical. That’s why the website failed. The website was actually launched in Nov 1999, and was liquidated in May 2000, the collapse was so quick that it would be worthy to look into the reason of failure of Boo.com
Reasons for the failure of Boo.com
First, it expanded the business and wanted to reach the global market in a short time. To ensure the effective presence in all targeted countries, the website of the company was launched simultaneously in several countries,. Thus, its resources were spread thin.
Second, Boo.com was not able to consider those companies with strong brand names e.g. Land’s end. Those branded companies had already established...
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