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Managing an e-business (avoiding failure)

Company leaders are still a bit concerned about the possibility of becoming an e-commerce failure. You decide that the best thing to do is to face the issue head on, and show that Michelle's can avoid the errors that caused other companies to fail. You bring this topic up in your next meeting with leaders.

Cite an example of an e-commerce failure. The definition of "failure" can vary so defend your choice and discuss what went wrong and how this event was received by the stakeholders and media. Some examples of failure are: going out of business, making marketing blunders (such as promising things that cannot be delivered), technology glitches (such as network outages or faulty redirects), or spending large amounts of money and never getting the expected/desired results.

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At the beginning of the dot-com frenzy, many companies began operating online. E-commerce was such a new phenomenon that people were so caught up in the hype. Unfortunately, many start-up e-commerce sites went bust within a few short years of opening their virtual door. I will focus on a famous example of a startup site that failed called was founded in 1999. It was a Swedish based venture that sold designer clothing online. The website was founded and financially supported by venture capitalists who inject $135 million dollars of money into the company.

The site opened, and actually drew some customers. Sales were quite brisk. One of the store's policies was free ...

Solution Summary

This solution discusses concepts regarding the managment of an e-business.