Lesson From Flops Background Information of Company Worlds first online global sports and fashion retail site European company founded in 1998 and operating out of a London head office Founded by three Swedish entrepreneurs Previous experience in online business: bookstore, bokus.com, which in 1997 became the world’s third largest book e-retailer behind Amazon and Barnes & Noble. Company Details Business Idea Become the world-leading Internet-based retailer of prestigious brand leisure and sportswear names Listed brands such as Polo Ralph Lauren, Tommy Hilfiger, Nike, Fila, Lacoste and Adidas At launch it would open its virtual doors in both Europe and America with a view to ‘amazoning the sector’ SWOT Analysis SWOT Analysis Media savvy Good Marketing Strategies Innovativeness : State of the art technology Good networking skills Big resources and funding available SWOT Analysis Liability of newness, lack of track record , lack of experience in the industry, lack of management skills Poor financials, careless with spending, high overhead Too ambitious, expand too fast Did not understand customers SWOT Analysis They had a global market First to come up with virtual fitting World wide branding Economies of scale opportunities SWOT Analysis Conflict with retailer interest Low adoption of technology by users High expectations from stakeholders and customers to deliver Timeline (Plan to give interactive timeline, from founded, money expenditure, bankrupt, liquidated) Reasons For Failure Aggressive growth plan Timing of technology Lack of management, poor planning Did not do proper customer survey Too much hype and expectations for boo.com Did not do risk management – delay in delivery of website Tight timeline Lessons To Draw For Our Group Start small, expand in an appropriate manner Experience needed in the industry in order to understand customers, suppliers Poor user experience. No matter how good your backend systems are, the users will only remember your front end. Fail there and you will fail Lots of money != success. Importance of making your customer happy but not at expense of the company e.g. goods return policy Aftermath of boo.com Fashionmall.com bought the remains of boo.com which included brand, Web address and advertising materials but this deal did not include any physical assets, software or distribution channels The deal also included the Miss Boo character. Boo's main assets, its software and technology, was sold to Bright Station for $250,000. Boo.com had purchased this technology for $70 million. Less than $2 million was earned by selling all Boo's remaining assets. In August 2010, the similarly-named UK online fashion outlet boohoo.com was launched, possibly a name inspired by the earlier website.