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Lesson From Flops

Lesson From Flops. By Team Trump. Company Background. European company founded in 1998 and operating out of a London head office World’s first online global sports and fashion retail site

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Lesson From Flops

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  1. Lesson From Flops

    By Team Trump
  2. Company Background European company founded in 1998 and operating out of a London head office World’s first online global sports and fashion retail site Founded by three Swedish entrepreneurs:Ernst Malmsten, Kajsa Leander and PatrikHedelin. Previous experience in online business: bookstore, bokus.com, which in 1997 became the world’s third largest book e-retailer
  3. Company Vision To become the world’s leading Internet-based retailer of prestigious brand for leisure and sportswear names Listed brands such as Polo Ralph Lauren, Tommy Hilfiger, Nike, Fila, Lacoste and Adidas At launch it would open its virtual doors in both Europe and America with a view to ‘amazoning the sector’
  4. The brand name Boo brand name originated from filmstar ‘Bo Derek’, best known for her role in the movie ‘10’. The domain name ‘bo.com’ was unavailable, but adding an ‘o’, procured the domain ‘boo.com’ for $2,500 According to Rob Talbot, director of marketing for Boo.com, they were “looking for a name that was easy to spell across all the different countriesand easy to remember ... something that didn't have a particular meaning”.
  5. SWOT Analysis
  6. SWOT Analysis Strengths Big resources and funding Media savvy Huge marketing campaigns Innovativeness : State of the art technology, Miss Boo Good networking skills
  7. SWOT Analysis Weakness Liability of newness, lack of experience in the industry, lack of management skills High overheads Lack of financial controls Too ambitious, expand too fast Did not understand customers Clumsy User Interface
  8. SWOT Analysis Opportunities Breaking into 18 countries simultaneously World wide branding First to come up with virtual fitting Economies of scale opportunities Exploit its logistics platform to sell other products
  9. SWOT Analysis Threat E-Commerce relatively new Low adoption of technology by users Key internet buying driver –lower prices Conflict with retailer interest High expectations from stakeholders and customers to deliver
  10. Timeline (Plan to give interactive timeline, from founded, money expenditure, bankrupt, liquidated)
  11. Launched 3 Nov 99 Boo’s Website
  12. The End of Boo…. 18 May 2000 6 months after its launch Investor funds could not be raised to meet the increasing costs Burned $185 million in 18 months!
  13. What went wrong… Poor Management Lack of experience Face challenges of building a global brand No risk management Growth plan was too aggressive Over recruitment of staff Tight timeline to deliver
  14. What went wrong… Lack of sound Financial Management Hefty programming costs Excessive employment benefits and luxurious spending Costs of consultancy Poor timing of Marketing Launch of site was delay for six months, missing 3 launch dates High expectations and hype had been set
  15. What went wrong… Technology – double-edged sword Poor timing of technology, customers not ready Building technology infrastructure – difficult Dogged by technical delays Poor Customer Management Faulty customer survey Did not account for internet buying driver No customer retention strategies eg discounts, loyalty programme Poor user experience (easy, convenience)
  16. Lessons To Draw For Our Group Lots of money ≠ equal success. Start small, expand in an appropriate manner Good Marketing – importance of branding Experienceneeded in the industry in order to understand customers, suppliers
  17. Lessons To Draw For Our Group Importance of good financial controls Understand your customers Proper Use of TechnologyNo matter how good your back­end systems are, the users will only remember your front end. Fail there and you will fail
  18. Aftermath of boo.com Fashionmall.combought the remains of boo.com The deal also included the Miss Boo character. Boo's main assets, its software and technology, was sold to Bright Station for $250,000. Boo.com had purchased this technology for $70 million. Less than $2 million was earned by selling all Boo's remaining assets. In August 2010, the similarly-named UK online fashion outlet boohoo.com was launched, possibly a name inspired by the earlier website.
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