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CASE STUDY

CASE STUDY. Group Members : Manish Chandra Varun Tej Vinjam Rohith Reddy Topcharla Siddharth Pradeep Gupta Vijay Kumar Das Nitish Kumar Singh. Sales Revenue Of Etoys.com . Failure Of Etoys.com. Company’s expenditure on each toy surged its revenue

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CASE STUDY

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  1. CASE STUDY Group Members : Manish Chandra VarunTejVinjam Rohith Reddy TopcharlaSiddharth Pradeep Gupta Vijay Kumar Das Nitish Kumar Singh

  2. Sales Revenue Of Etoys.com

  3. Failure Of Etoys.com • Company’s expenditure on each toy surged its revenue According to the sales stats. in 1999 the company’s sales were $151 million, eToys lost $190 million. For every $1 Sales Revenue, they spend $2.27 ($.81 on purchasing, $.29 on the website and technology, $.33 on distribution costs, $.37 on advertising, and $.47 on other expenses)

  4. Failure Of Etoys.com • Selling toys with lower margins. The company was dealing in about 64000 different types, among which 80% of toys had margins of about 1-2%.

  5. Failure Of Etoys.com • Negative publicity from Media During Christmas 1999, about 4% of the total orders of the company were not shipped on time and did not arrive until after Christmas. Unfavorable comments by the media on the company’s future reversed the opinion of the investors.

  6. Failure Of Etoys.com • Spended high on acquiring Distribution Firms The company leased two distribution centers in April 2000 with a expenditure of $124 million which was 95% of the reported revenues for the year ending March 31, 2000.

  7. Failure Of Etoys.com • Discarded the idea of merging with a retail store. In the final years, when the company was having serious cash crunch ,CEO Toby Lenkrefused to consider the option to merge with a retail store and filed for bankruptcy on March 6, 2001.

  8. Failure Of Etoys.com • Discarded the idea of merging with a retail store. In the final years, when the company was having serious cash crunch ,CEO Toby Lenkrefused to consider the option to merge with a retail store and filed for bankruptcy on March 6, 2001.

  9. Annexure - I

  10. Annexure - I

  11. Annexure - II

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