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Pets.comNhm 2:1- NT Phm Uyn Phng2- L V kim Phng3- V Th Phng Tho4- Nguyn Th Thy Nhung

5- Hunh Mai Bo Quyn6- Nguyn Duy Tin7- Nguyn Th Thanh Nga

Huflit University

International Business Management Faculty

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Pets.com

Was One of the most visible of thethousands of e-commerce firms

Was sprouted up in the late 1990sDid make significant investments ininfrastructure such as their warehousing

Slogan Because Pets Cant Drive

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About Pets.com

Buying Pet supplies over Internet didntprove to be a profitable business model.

Pet food tends to be modestly priced andexpensive to ship and available in mostsupermarkets and retail stores

Pets went out of business in the summer of2000, selling to Petco.

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Why Pets.com die?

the cost of advertisingselling merchandise for approximately

one-third the price it paid to obtain theproductstried to build a customer base by offering

discounts and free shipping (the costs ofshipping for heavy bags of cat litter andcans was very high)

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Dell Computer

Has become a large and profitablecompany by selling computers online

Allow customers to custom designcomputers online

Have the products built and shippedwithin three business days

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Dells Continual efforts at

Improving after-sales service even asDell's energy went into providing anaffordable product and reliable delivery.

Minimizing costsPassing its cost reductions on to

customers through lower PricesConcentrate on product design

Kept its sales and profits growing

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Dells competitors

Have attempted to copy many of DellsWeb site features and internal systems

Dell did not have to compete directlyagainst the more established PC

manufacturers.

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The dramatic difference betweenthese two organizations

Managing in an electronic environment issignificantly different from managing intraditional organizations

Dell understand this difference succeedRealized tremendous benefits from its application ofinformation technology.Had a simple but powerful vision: that personalcomputers could be built to order and sold directly tocustomers.

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1.1- How technology has assisted a company

like Dell Computer

Dell Computer realized tremendous benefitsfrom its application of information technology.

IT has been used to create competitiveadvantages at the operational level

IT has been used to introduce anunprecedented type of strategic informationmanagement.

PC made up of little more than software from

Microsoft and chips from Intel, was rapidlybecoming a commodity product.

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1.2 Managerial changes are necessary to

ensure that the full benefits of technology are

reaped.

have company's direct business modelas widely accepted outside the UnitedStates as it is across Dell's home

market.find enough talented people to help the

company capitalise on the opportunities

available in overseas markets.

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2.1 Going out of business when the

realities of dot-coms hit, Pets.com wasnt

not simply a flash in the PAN

It is a kind of e-commerce - very conveniencefor customers, Increases consumers' ability togather information about products and prices

The Pets.com site design was extremely wellreceived, garnering several advertising awards

Success in building brand recognition

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2.2 - The demise of Pets.com might be

attributable to poor management of the

company

Failed to research how they promoted theirproduct.

Need to research price of their product. If planned and executed correctly the Internet

can greatly improve salesMistakes made was that they were more

interested in attracting visitors to their websitebut not necessarily winning them over tocustomers.

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With direct-to-customer business model, Dell sells 90%of its PCs to direct customer, this key business modelhelp DELL succeed.

DELL s direct relationship with customer to: Allow DELL :

To tailor its offerings to customer need,To offer add-on products and servicesTo use the Internet to offer a variety of customer services.

And allow Customer:To custom designed computers online,

To initiate the order,To have the products built and shipped within three businessdays.

3- A company like Dell computer is customer

responsive

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SUCCESS VS FAILURE ONLINE BUSINESS

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