Research Project Report “What are the contributing factors for business success and failure in B2C e-commerce?” By Adam Morte Keely Ritchie Boland Thomas Rollino HTM 304 - Management Information Systems Section 02 - CRN 21879 Dr. Fang California State University San Marcos May 10, 2007B2C E-Commerce Page 2 of 26 Table of Contents Introduction..................................................................................................................................... 4 E-commerce.................................................................................................................................... 4 E-Commerce and Market Efficiency........................................................................................... 5 Benefits to Buyers....................................................................................................................... 5 Benefits to Sellers........................................................................................................................ 6 Objectives/Aims.............................................................................................................................. 6 Scope of Project.............................................................................................................................. 7 B2C E-Commerce ....................................................................................................................... 7 Six B2C E-commerce Companies............................................................................................... 8 Research Methodology ................................................................................................................... 8 Case Studies.................................................................................................................................... 9 Webvan.com................................................................................................................................ 9 Overview of company .............................................................................................................9 Too Big Too Fast................................................................................................................... 10 Too much investment in infrastructure.................................................................................. 10 Doing it all on Its Own .......................................................................................................... 11 Conclusions ........................................................................................................................... 11 Pets.com .................................................................................................................................... 12 Overview of company ........................................................................................................... 12 Highly Competitive Arena..................................................................................................... 12 Financial Problems ................................................................................................................ 13 No Reason to Shop at Pets.com............................................................................................. 13 Conclusions ........................................................................................................................... 14 Furniture.com............................................................................................................................ 14B2C E-Commerce Page 3 of 26 Overview of company ........................................................................................................... 14 High Shipping Costs.............................................................................................................. 15 Poorly built back-end computer systems............................................................................... 15 Product Was Not Suited to E-commerce............................................................................... 16 Conclusions ........................................................................................................................... 16 Amazon.com ............................................................................................................................. 16 Overview of company ........................................................................................................... 16 Growth over Profit................................................................................................................. 17 Online Community ................................................................................................................ 18 Inventive Ideas....................................................................................................................... 18 Conclusions ........................................................................................................................... 18 Netflix.com................................................................................................................................ 19 Overview of company ........................................................................................................... 19 “Moneyball” Strategy............................................................................................................ 20 Partnerships/Subsidiaries....................................................................................................... 20 Conclusions ........................................................................................................................... 21 Dell.com.................................................................................................................................... 21 Overview of company ........................................................................................................... 21 Automated E-Commerce Network........................................................................................ 22 Radio Powered ID chips........................................................................................................ 22 Conclusions ........................................................................................................................... 23
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