9th April 2008 The Most Famous Dotcom Failure - What lessons can we learn? Author: Deborah Collier
The most memorable Dotcom Failure was that of the original Boo.com eight years ago. Please find below our article written and recently revised for our readers. This article is a useful read before embarking on any e-commerce project.
Introduction
The year 2000 was a turbulent time for the Internet economy, but the failure of the clothing e-tailer Boo.com, added to fears about the stability and viability of existing and future on-line retailers. If we examine the history of the original Boo.com, its financial situation, marketing and management strategies, and assess the reasons for its downfall, we can learn several valuable lessons.
Boo.com was launched 3rd November 1999, with approximately $125million (76 million pounds) of funding provided by investors such as Benetton and Bernard Arnault, chairman of LVMH, Europe’s largest luxury goods group. It had not only become the most heavily funded Internet start-up in Europe, but had also become the most high profile. All eyes were on Boo.
The launch was delayed by six months, which according to various sources were due to technological problems. According to the ‘Financial Times’, there was a huge spending on consultancy fees, to get the website launched as quickly as possible. In addition, they state that $6million was spent on fashion ware, which had to be discounted as it was no longer fashionable by the time the site was eventually launched (Financial Times. 18th May 2000). When the site did eventually arrive, customers found the shopping experience frustrating. They were greeted by an on-line virtual shopping assistant ‘Miss Boo’. She did not succeed in helping visitors with the purchasing experience. Instead Boo.com visitors were greeted with slow browsing, poor navigation and irritating technology. This lost potential customers and gained Boo a bad reputation...
Download Full Article 136KB PDF
|
