webvan

Prior to performing a SWOT analysis, a STEEP analysis was performed. The STEEP analysis concluded that the company is in an age of increasing technological advances, which must be maintained and implemented to sustain operation. Grocery services will always be required even in a down or slow economy and currently there are few political or environmental situations that would affect the company. In the following section, Webvan’s internal strengths and weaknesses will be discussed as well as the company’s external opportunities and threats.
Strength
Webvan has many strength within their operational practices as well as their marketing practices. One of Webvan’s strength is their ability to provide good customer service to their consumers. Webvan does not charge membership fees and waives delivery charges for orders over $50. Their ability to fill orders accurately and deliver them on time is another strength. For both of these areas, Webvan has an upper ninetieth percentile ranking. With their state-of-the-art technology, they are able to uphold good delivery policies with ample distribution centers, while maintaining a wide selection of products and services. The company’s store site contains good content, has usability ease, and provides policies that ensure consumers’ privacy and secure credit-card information processing.
Weakness
One of the company’s weaknesses is that Webvan is trying to be all things to people. Francis Gaskins of Gaskins IPO Desktop stated that Webvan “BBit off a big mouthful”. Webvan is taking a chance trying to provide service as well as convenience and to do this for the same price as grocery stores. To be able to do this Webvan has implemented a complex business system, which currently has only been proven at low capacities, nowhere business system, which currently has only been proven at low capacities, nowhere close to the order volume levels for which it was designed. Webvan is currently operating at only 40% of their operating