--an failure E-commerce company

With the changing trends of globalization and the advancement of modern technology, the development of e-commerce has boomed in the past few years. However, not all companies are succeeded in this business world handles by the advanced technology. Due to their unimpressive and non-persuaded marketing capacity as well as other weaknesses they either became bankrupt or met failure. For example, Webvan.com.

Louis H. Borders founded Webvan in 1996. It became a dot.com company on June 2, 1999. Webvan let you order groceries and fresh foods like meat, produce and milk over the Internet and have them delivered right to your home the same day. The failure of webvan.com was due to the inability to make high volume and low priced purchases. Webvan.com failed to meet customer requirements. Besides, it has also made bad management decisions like spending $850 million on ads and campaigns. The failure of Webvan raises troubling questions for e-commerce companies trying to establish brand identity and profits chiefly through customer service.
Although Webvan was popular with people who could afford its delivery fees or who did not have a means of shopping in a traditional store, but it was never able to attract enough customers to justify its spending spree.
The company was closed on July, 2001, putting 2000 out of work and leaving San Francisco’s new ballpark with a Webvan cup holder at every seat.

Globalization has changed the marketing and business trends. Now one can do a market survey and also do retail purchase via electronic media by just sitting on a seat with just a click away. Though the company failed to bring e-commerce into success, it is growing faster and gaining more and more recognition with the effective of team management strategies and strong organizational despite the fact that it still at its infant stage.