An example of an E-Commerce failure and its causes - Boo.com

Thursday, January 29, 2009

Boo.com’s history (Nov 1999 - May 18th 2000)


Boo was beaten by technology and the fickle fingers of those who shop for clothes on the web. From the day it launched technology was a problem for the online clothes retailer. Originally it was supposed to launch in May 1999 but technical hitches delayed the unveiling. When Boo.com finally went live last November its ambitious technology was there for all to see - if they could be bothered to wait for it to download. The graphics-heavy site took a notoriously long time to load.


The company stated that ‘their business idea is to become the world-leading Internet-based retailer of prestigious brand leisure and sportswear names’. However, after less than a year it launched, boo.com faced a critical moment. “Unless we raise $20 million by midnight, boo.com is dead”. The CEO of the boo.com Ernst Malmsten said, on May 18th 2000. Half the investment was raised, but this was too little, too late, and at midnight, less than a year after its launch, Boo.com closed because investor funds could not be raised to meet the spiraling marketing, technology and wage bills.


The headlines in the Financial Times, the next day read: “Boo.com collapses as Investors refuse funds. Online Sports retailer becomes Europe’s first big Internet casualty”. Although it happen 9 years ago, the boo.com case still remains as a valuable case study for all types of businesses, since it doesn’t only illustrate the challenges of managing E-commerce for a clothes retailer, but rather highlights failings in E-commerce strategy and management that can be made in any type or organization.



The causes of the e-commerce failure


There are several causes that makes Boo.com fall. Firstly, Boo.com full of technologies that cannot be view by all the internet users by that time. It could not be seen by people who use Macintosh computers which are heavily used by graphics, design and media companies. These companies surely are one of the key markets for a hip online retailer like Boo. Next, it used lots of graphics, pop-up windows and 3-D images that only those with a 56k modem could see it without waiting minutes for it to load. Getting the most out of the site required a high bandwidth internet connection. But according to Therese Torris, technology analyst from Forrester Research, only 1% of home surfers in Europe and 2% in the US have such high-speed connections by that time.


Although Boo.com looked great, anyone visiting it in November 1999 was confronted with a formidable array of windows. In one was Miss Boo, an animated helper who commented on the clothes people were buying. At the same time four other windows were open showing:

- The range of clothes a buyer was choosing from

- A detailed image of one item that could be spun around or magnified

- A Boo bag holding what was being bought

- A mannequin dressed in the clothes a shopper was buying

To do all this Boo used a technology called Flash made by US software company Macromedia that lets web page designers add animations and graphics to sites. But unfortunately at the time Boo launched, few people had installed the software program, called a plug-in, that let them see the funky graphics. Now Flash software is much more widely used.


According to Jim McNiven, chief executive officer of award winning web design company Kerb, he said that many companies stop workers from downloading plug-ins because of potential security risks. He said it was much better to use technologies that need no extra software and that everyone can see. Besides that, he says that Kerb always ensures that at least the last two full versions of browsers can see all parts of webpages designed for clients.

Furthermore, the site was very difficult to navigate around. Shoppers could get lost and find no way back to their starting point. In the web design industry, there is a “three-click rule” for site design, which simply means that the users should not need to click more than three times to find the information they seek. Customers prefer pleasurable, simple and quick browsing experience rather then complicated and full of animation that confusing and wasting their time.


In order to gain customer acceptance, Boo redesigned its website in January to make it easier to navigate and added a version devoid of pop-up windows and graphics. The changes gagged Miss Boo and a paper catalogue was printed for those who want to buy offline. However, the early bad experience scared off many online shoppers who did not go back to Boo.com, preferring to do their buying on the high street or on websites that were easier to use. Online shoppers are notoriously fickle and surveys have shown they are easy to irritate and hard to impress. Irritated shoppers tend to decamp for websites offering better service.


Additional information:

But some of the blame for Boo's demise can be put down to the fact that the e-commerce is in its infancy. Boo launched simultaneously in 18 countries and had to create an international infrastructure that could handle all the different currencies, consolidate orders and deliver clothes and shows across the world.

The history and evolution of E-commerce

Electronic commerce also can call it as E-commerce or ecommerce is the buying and selling of goods and service on the internet throughout the world. It also can define as a modern business methodology that addresses the need of organization, merchant or consumer help to improve the quality of good and service.


History and evolution of E-commerce

Beginning, the term ecommerce meant the process of commercial transactions electronically with the technology such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). These were both introduced in the late 1970s which give an opportunity for user to exchange the business information and do electronic transaction.
After that, internet began to advance popularity in year 1994. It took about 5 year to develop the security protocols (HTTP) and DSL that allowing rapidly access and a persistent connection to the internet. By the end of 2000, many people began to associate a word "ecommerce" with the ability of purchasing various goods through the Internet after many European and American business companies offered their services through the World Wide Web (www).
Below is the development of ecommerce from Wikipedia:-

Year 1990
Tim Berners-Lee writes the first web browser, Worldwide Web, using a NeXT computer.
Year 1992
J.H. Snider and Terra Ziporyn publish Future Shop: How New Technologies Will Change the Way We Shop and What We Buy. St. Martin's Press.
ISBN 0312063598.
Year 1994
Netscape releases the Navigator browser in October under the code name Mozilla. Pizza Hut offers pizza ordering on its Web page. The first online bank opens. Attempts to offer flower delivery and magazine subscriptions online. Adult materials also becomes commercially available, as do cars and bikes. Netscape 1.0 is introduced in late 1994 SSL encryption that made transactions secure.
Year 1995
Jeff Bezos launches
Amazon.com .and the first commercial-free 24 hour, internet-only radio stations, Radio HK and NetRadio start broadcasting. Dell and Cisco begin to aggressively use Internet for commercial transactions. eBay is founded by computer programmer Pierre Omidyar as AuctionWeb
Year 1998
Electronic postal stamps can be purchased and downloaded for printing from the Web.
Year 1999
Business.com sold for US $7.5 million to eCompanies, which was purchased in1997 for US $149,000. The peer-to-peer file sharing software Napster launches.
Year 2000
The
dot-com bust
Year 2002
eBay acquires PayPal for $1.5 billion. Niche retail companies CSN Stores and NetShops are founded with the concept of selling products through several targeted domains, rather than a central portal.
Year 2003
Amazon.com posts first yearly profit.
Year 2007
Business.com acquired by R.H. Donnelley for $345 million
Year 2008
US eCommerce and Online Retail sales projected to reach $204 billion, an increase of 17 percent over 2007.

Besides that, E-commerce also can divide into:-
E-tailing or The Virtual Storefront and the Virtual Mall
That was a place for direct retail shopping such as 24-hour availability, the ability to interact and provide custom information and ordering, and multimedia prospects, the Web is rapidly becoming a multibillion dollar source of revenue for the world's businesses.

E-Mail, Fax, and Internet Telephony
E-commerce also conducts e-mail, fax and the emerging use of telephone calls over the Internet. Most of the Business to business, with some companies attempting to use e-mail and fax for unsolicited ads (usually viewed as online junk mail or spam) to consumers and other business prospects. An increasing number of business Web sites offer e-mail newsletters for subscribers.

Business-to-Business Buying and Selling
A lot of companies sell products to other companies through internet have discovered that the Web provides not only a 24-hour but also a quick way to reach the right people in a company for more information.

The Security of Business Transactions
Security includes authenticating business translators, controlling access to resources such as Web pages for registered or selected users, and, to ensuring the privacy and effectiveness of transactions.

Conclusion, ecommerce existence makes customer shop more convenience because they just sit in front of computer by using the mouse click the thing want to buy and then use electronic payment service to make the payment.

Self-introduction : steven lim wei chun

Thursday, January 22, 2009

My name is Lim Wei Chun, but most of my friends call me by my nickname which is Steven. When I free, I will spend most of my time on dancing, play guitar and gaming. Other than that, I will use my free time to online.
There are five website that I surf most, which is friensters, hotmail, google, youtube and answers.com. The reason why I surf these website so often is because it gives me information that I want.



1. http://www.friendster.com/dster.com
From friendster, I can know new friends and keep contact with the old friends. Besides, it gave me many information and news about the people I wish to know more.



2. http://www.blogger.com/www.hotmail.com
Hotmail is a place that links between me with other people. Everyday I will go in at least once to check on the mails sent by people, advertisements or websites. It enable me to communicate with people all over the world and it also update me often on the latest product or news.


3.http://www.google.com/
From google, I can find almost everything that I wish to know. It is so informative that helps me to extend my knowledge, solve my problems and even help me in my study.


4.www.youtube.com
Youtube is a web that enable people to upload or view videos that comes from the whole world, it is so interesting because when I search and watch the clips, I felt like I having a cross country television.


5.http://www.answers.com/
During my study or revision, answers.com will be the most often website that i visit. It tells me every words that i don't understand, and it explain in many other languages. Others that understand english, this website also taught me about words from other countries.



I will do a lot of things during online, the five things I done most are
- Surf net
- Chatting
- Check mails
- Download songs and videos
- Play online games.

These activities enable me to increase my knowledge, relationship with people, and of course it gave me joys.

The Wheel Is Come Full Circle - William Shakespeare - Introducing Myself

I’m Alvin Ling. Students of Utar, major in Business Administration Entrepreneurship. Love the course I choose as I can directly apply the learning to my working. (I’m a half-part-timer worker, usually work after class)

Sitiawan, Perak, is my hometown, a very rural “kampong” (village), which enrich with many Malaysia fruits like, durian, mango, rambutans, mangosteen, banana, papaya,and etc. It’s “EAT ALL YOU WANT” policy as you can pick from tree and eat on the spot. 100% GUARANTEE FARM FRESH, ARTIFICIAL, ADDICTIVES, & COLOURINGS FREE.

Well, growing and shaped up with different family’s I tend to view things from many angles and perspective. Sometimes things happens to be complicated, I see it's normal. And the worst is, sometimes things happens to be an easy matter, it takes me, days or even weeks to dissolve and understand the matter.

SmileyCentral.com "Huh, What a tough life!"

Speaking of Life, I wanted to share some cool video I found. This movie clip make me realise, there is "Another World In This World". (Wa ha ha, just trying to be funny
). You will know what i mean when you see this movie clip.




Being in the final year enrolment make me realise and feel that time really "fly" (past by) fast. Remember those unfortunate bad days like involve in car and motorcycle accidents, fights, back-stab by friends, sleepless nights, tension while emotions running high and low, overload of duties and responsibilities, penniless and ...... the list goes on and on.......... Anyhow, luckily all has pass by and it makes a Better - Man of me. Thinking back it's hard to believe, how a student life can face all that challenges. For now, the best part is having a group of friends (classmate, group mates, co-workers, and some new friends) which is very supportive and understanding.

Just wanna Thank You to all you guys and gals. SmileyCentral.com

The top 5 websites I visit the most and the top 5 Internet activities are:

SmileyCentral.com
http://www.crosswalkradio.com/
- Is one of the most popular online radio stations which provides christians songs and hyms. Its a very speacial and rare websites which contains 14 christians online radio stations. I bump to this website accidently while I was looking for song of the soul. I rate this website a maximum stars as you can really find some song which really suits your taste. Anyhow, your internet connections must be steady and fast, if not the song will jam. SmileyCentral.com. I often listen songs in this website because I often get inspirations from the song.


http://www.msn.com.my/ - My favourite news update website. It contain almost everything from search engines, news and weather update (region or other country), even the best is it provide online "dating", which you can find your favourite companion. Try it, it's very interesting. Thumbs Up . As I said, msn is my favourite news update website because everyday new information of news around the world will show in picture column. (It makes me curious to click on it). The information is very precise and short. I find it's very easy to understand and quick info up-dates.





http://http://www.wikipedia.com// - This is a very informative website which contain infomation that I find it helpful. Sometimes this website suprise me with the informations provided. For example, when you type a word, the website will define the words like a dictionary. Then in a lower column the words will show the origin of the words, how it's use in other field and with examples. It's provides links and if you wanted to know more about the words, you can clik on it. Sometimes I felt I'm so tiny in this world as what I know is so little. And by that I learned from Guru Wikipedia.

SmileyCentral.com
http://www.pcdepot.com.my/ - This website contain latest computer gadgets which the price offer is very reasonable. I usually go to this website to check and compare the price the gadgets I want to buy. I usually find this website offer price which is 10% -20% lower than current market. Computer geeks can find this website helpful especially when they know how to repair computer.

I wanted to share with you the latest LG handphone. The advertisment is featuring all the things that you can expect from this phone. Awesome! Check it out.





http://www.dict.cn/ - Is a very simple online dictionary. I usually use this website to find words that I do not know while I'm using computers. It's very convenient because you do not need to bring along thick and heavy dictionary with you, just to check words that you do not understand. So, while I've internet I can easily access to this website whenever and wherever. I usually will open this web page and left it there when I open my computer.






Self-Introduction: Phuah

Tuesday, January 20, 2009


Good day to all of you, welcome to my blog. I’m Phuah Chin Yaw from Penang Georgetown (is a Paradise because there have many delicious food and cheaper if compare to other country) and this is my first time introducing myself in blog. Currently, I still in University life that was year 3 trimesters 1 studying Entrepreneurship in UTAR. There is nothing can introduce myself, only can said that I’m just a normal guy and my hobby is playing badminton, Chinese Chess and online.

The 5 website i frequently visit are:-

The website I frequently visit is http://www.google.com/. This is my online teacher that can let me search a lot of information. I like this search engine because it easy to use and also provide me many useful information to help me complete my assignment.

I also always check my email through http://www.hotamail.com/. Every day I must go into this website to check my email because every day many friends will send a lot of mail to my mail box so that checking email is I usually do every day.

Besides that, I also suffer to http://www.viwawa.com/. This is an online game, inside the website have many games but I only play Chinese Chess with my friend because this is my favorite game. When I free, I will login to this website and challenge my friend.

Furthermore, I usually go to http://www.kwongwah.com.my/ to see the news. Through this website I can know what are happening in my hometown and the news around the world even I stay in home every day.

Lastly is http://www.maybank2u.com.my/ I always use e-banking to transfer my money to pay rental. Besides that, I also provide service for prepaid user that was help people top up mobile money so that I always use e-banking to make mobile top-up payment to the dealer.

That’s all myself introduction, who is prepaid user and want to top up mobile money also can find me. My contact no: 012-5396741 (Phuah).














 
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