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Lesson From Flops

Lesson From Flops. Background Information of Company. Worlds first online global sports and fashion retail site European company founded in 1998 and operating out of a London head office Founded by three Swedish entrepreneurs

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Lesson From Flops

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  1. Lesson From Flops

  2. Background Information of Company • Worlds first online global sports and fashion retail site • European company founded in 1998 and operating out of a London head office • Founded by three Swedish entrepreneurs • Previous experience in online business: bookstore, bokus.com, which in 1997 became the world’s third largest book e-retailer behind Amazon and Barnes & Noble.

  3. Company Details

  4. Business Idea • Become the world-leading Internet-based retailer of prestigious brand 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’

  5. SWOT Analysis

  6. SWOT Analysis • Media savvy • Good Marketing Strategies • Innovativeness : State of the art technology • Good networking skills • Big resources and funding available

  7. SWOT Analysis • Liability of newness, lack of track record , lack of experience in the industry, lack of management skills • Poor financials, careless with spending, high overhead • Too ambitious, expand too fast • Did not understand customers

  8. SWOT Analysis • They had a global market • First to come up with virtual fitting • World wide branding • Economies of scale opportunities

  9. SWOT Analysis • Conflict with retailer interest • Low adoption of technology by users • High expectations from stakeholders and customers to deliver

  10. Timeline (Plan to give interactive timeline, from founded, money expenditure, bankrupt, liquidated)

  11. Reasons For Failure • Aggressive growth plan • Timing of technology • Lack of management, poor planning • Did not do proper customer survey • Too much hype and expectations for boo.com • Did not do risk management – delay in delivery of website • Tight timeline

  12. Lessons To Draw For Our Group • Start small, expand in an appropriate manner • Experience needed in the industry in order to understand customers, suppliers • Poor user experience. No mat­ter how good your back­end sys­tems are, the users will only remem­ber your front end. Fail there and you will fail • Lots of money != success. • Importance of making your customer happy but not at expense of the company e.g. goods return policy

  13. Aftermath of boo.com • Fashionmall.combought the remains of boo.com which included brand, Web address and advertising materials but this deal did not include any physical assets, software or distribution channels • 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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