Webvan was incorporated December, 1996, began commercial operations in June, 1999. Founded by Louis Borders (also founder of the bookstore chain, Borders Group), the firm set out to build a nationwide grocery delivery-to-the-home business. Having burned through between $800 million and $1 billion, it ceased operations July 9, 2001. Please build your own case history from any and all sources you can find, EXCEPT conversations with any members of the MKTG 500 WE class. In this sense, you should treat this as an individual assignment without any assistance from class members. Your task is to evaluate and analyze as much relevant information as you feel is necessary in order to prepare a written memorandum to me.
The question you should address is: Why did Webvan fail? You should consider this question from a marketing perspective using all available resources and tools at your command (including our textbook, internet, library, newspapers, etc. ).
You should feel comfortable using whatever accounting, finance, or other disciplinary tools you may have to help you gain a thorough understand of Webvan’s situation, and to help you evaluate and analyze the reasons for Webvan’s failure. Requirements: Your memorandum must be double-spaced using 11 or 12 point font, with at least 1/2 ” margins all around, and limited to no more than three pages of text, and two pages of any exhibits, charts or graphs that support or extend your discussion. All exhibits must be numbered and referenced in the body of your text. Further, they must have a title that makes crystal clear “what this exhibit or chart or graph tells the reader.” You should also include a sixth page in your memo listing all sources used with sufficient detail that the reader could locate the items.
The Essay on Compare And Contrast Webvan And Amazon
SIMILARITIES Based on Amazon's success, the large number of similarities between Webvan and Amazon suggests on the surface that Webvan could have remained a going concern. Webvan, like Amazon, created an online service that was convenient and beneficial to use. The company accomplished this by creating an online ordering system where customers could order items and have a personalized shopping ...
Please be sure to reference each source by number within the text of your memo. Please prepare a summary or “highlights” of your analysis to be shared with your colleagues in class on November 8 th using the document camera (e. g. , bullet points, and any exhibits would be helpful).
(Highlights will not be turned in to me. ) Evaluation: Papers will be evaluated based on how well the writer has identified and examined the critical factors contributing to Webvan’s demise, and how persuasively the analysis has been communicated to the reader.
Papers will be judged in comparison to each other. Caveat: Be sure to clearly indicate which information has been included from published sources. Material not specifically identified will be assumed to be your own words, ideas, and calculations. Final comment: As you work through an analysis of the Webvan case, ask yourself how so many smart managers could have produced such a major business failure. Are there lessons to be learned from their experience? How would you personally avoid making similar mistakes in the months and years ahead?
