WebVan: A Disaster on the Web
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
| Case Code |
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BSTR090 |
Electronic Format: Rs.
300;
Courier (within India):Rs. 25 Extra
ThemesInternet companies |
| Case Length |
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13 Pages |
| Period |
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1999 - 2001 |
| Organization |
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Grocery Express, Webvan. |
| Pub Date |
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2004 |
| Teaching Note |
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Available |
| Countries
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USA |
| Industry |
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Online Retailing |
Abstract:
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This case deals with the failure of the online grocery website webvan.com. During its launch Webvan received a large amount of funds from several venture capitalists, which it invested in the development of an automated technology platform for its warehouses. The case discusses at length Webvan's extravagant lifestyle and how it continued to spend even with declining profit margins. It also discusses in detail the strategic alliances entered into by the site and the fallout of these partnerships. It then elaborates on the e-tailing model of the site. Finally, it analyses Webvan's decision to close its store in mid-2001, due to huge financial and logistical problems. The case also takes a brief look at other online grocers who were not successful.
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Issues:
» Analyze the business model of Webvan, an online store launched with great expectations and discuss how its plans differed from those which preceded it
» Study the strategies adopted by Webvan to begin as an online grocer and eventually expand its range of products
Contents:
Keywords:
Failure, online grocery, website, webvan.com, large, amount, funds, venture capitalists, invested, development, automated technology platform, warehouses, extravagant, lifestyle, profit margins, strategic alliances, fallout, partnerships, e-tailing, model, 2001, financial, logistical problems, online grocers
WebVan: A Disaster on the Web
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