Impact of the Internet- Expectations Were High E-business strategies were supposed to: ■Reduce cost Increase service level Increase flexibility ·Increase profit In reality,these expectations have gone unmet because many of the new e-businesses have not been successful
Impact of the Internet – Expectations Were High E-business strategies were supposed to: Reduce cost Increase service level Increase flexibility Increase profit In reality, these expectations have gone unmet because many of the new e-businesses have not been successful
Example 6-8,6-9 Take 2 min.to consider example 6-8,6-9, think about the questions below. 1.Whether does e-business model fit the companies? 2.Why? Pull H I II IV III PushL H Pull Push
1. Whether does e-business model fit the companies? 2. Why? Example 6-8, 6-9 Take 2 min. to consider example 6-8, 6-9， think about the questions below. Pull Push Pull Push I II IV III L H H L
Reality is Different ..... Amazon.com Example Founded in 1995;1st Internet purchase for most people ■1996：$16 M Sales,$6 M Loss ■1999：$1.6 B Sales,$720 M Loss ■2000：$2.7 B Sales,$1.4 B Loss Last quarter of 2001:$50M Profit,Total debt:$2.2B Peapod Example ■Founded in1989 140,000 members,largest on-line grocer Revenue tripled to $73 million in 1999 1st Quarter of 2000:$25M Sales,Loss:$8M
Reality is Different …… Amazon.com Example Founded in 1995; 1st Internet purchase for most people 1996: $16M Sales, $6M Loss 1999: $1.6B Sales, $720M Loss 2000: $2.7B Sales, $1.4B Loss Last quarter of 2001: $50M Profit, Total debt: $2.2B Peapod Example Founded in 1989 140,000 members, largest on-line grocer Revenue tripled to $73 million in 1999 1st Quarter of 2000: $25M Sales, Loss: $8M
Example 6-6 Take 2 min.to consider example 6-6, think about the questions below. Analyze the example using the framework we have learnt before, consider: 1.Which of the strategies,push,pull, push-pull,or pull-push,fits the furniture company? 2. What were the main reasons for its downfall?
Analyze the example using the framework we have learnt before, consider: 1. Which of the strategies, push, pull, push-pull, or pull-push, fits the furniture company? 2. What were the main reasons for its downfall? Example 6-6 Take 2 min. to consider example 6-6， think about the questions below
Reality is Different ..... Furniture.com Example launched in 1999,with thousands of products $22 Million in sales the first nine months n( Over 1,000,000 visitors per month n Died November 6,2000 Pul↑H II Logistics costs too high IV III PushL H Pull Push
Furniture.com Example launched in 1999, with thousands of products $22 Million in sales the first nine months Over 1,000,000 visitors per month Died November 6, 2000 Logistics costs too high Reality is Different …… Pull Push Pull Push I II IV III L H H L