An example of an E-Commerce failure and its causes
E-commerce has evolved since the late 1990s. Many companies and individuals have been using e-commerce to do business. Besides, it allows people to do shopping online. Many have succeeded, and many have failed as well. Let us now look at the reasons for the failure.There are 10 reasons for the failure of E-commerce included:
1) Trying to sell the wrong product online
2) Lacking of marketing
3) A poorly designed website
4) Falling behind time
5) Poor checkout procedures
6) Not testing your site
7) A hard-to-find or nonexistent privacy policy
8) Poor order fulfillment
9) Straying from your objective
10) Poor customer service
Dell Computer Corporation (www.dell.com) is one of the largest firms consisting of
approximately 30,000 employees. They are located throughout the United States and contain high top quality supplies and security services. In order for a large company like Dell to grow with all the competitors in the industry, the organization must be willing to take chances, to expand the corporation.
Dell’s success over the years has caused concern for the future of the young company. Dell’s business-to-business (B2B) exchange failed for a number of reasons. The primary reason is the lack of insight in the research and development area. A lack of knowledge in this area proved to be detrimental because the company was unprepared for the lack of cooperation that other businesses showed in this new idea.
Dell gave up too early in the game because their expected profits were not met. If the business allowed more time to prove itself, it might have been able to salvage some of its profits. They should have focused on showing consumers that they are not just a PC firm. One way to do this would be to advertise the B2B and demonstrate their reliability and value of their computers. This would target their faithful customers, aiming to enhance the loyalty in the Dell brand name.
Another downfall may have been due to Dell’s choice of suppliers. 3M, Motorola, and Pitney Bowes are second-rate firms compared to companies such as Compaq, Hewlett-Packard and Gateway. Last May, these three firms joined forces and formed an Internet-based exchange.
1) Trying to sell the wrong product online
2) Lacking of marketing
3) A poorly designed website
4) Falling behind time
5) Poor checkout procedures
6) Not testing your site
7) A hard-to-find or nonexistent privacy policy
8) Poor order fulfillment
9) Straying from your objective
10) Poor customer service
Dell Computer Corporation (www.dell.com) is one of the largest firms consisting of
approximately 30,000 employees. They are located throughout the United States and contain high top quality supplies and security services. In order for a large company like Dell to grow with all the competitors in the industry, the organization must be willing to take chances, to expand the corporation.Dell’s success over the years has caused concern for the future of the young company. Dell’s business-to-business (B2B) exchange failed for a number of reasons. The primary reason is the lack of insight in the research and development area. A lack of knowledge in this area proved to be detrimental because the company was unprepared for the lack of cooperation that other businesses showed in this new idea.
Dell gave up too early in the game because their expected profits were not met. If the business allowed more time to prove itself, it might have been able to salvage some of its profits. They should have focused on showing consumers that they are not just a PC firm. One way to do this would be to advertise the B2B and demonstrate their reliability and value of their computers. This would target their faithful customers, aiming to enhance the loyalty in the Dell brand name.
Another downfall may have been due to Dell’s choice of suppliers. 3M, Motorola, and Pitney Bowes are second-rate firms compared to companies such as Compaq, Hewlett-Packard and Gateway. Last May, these three firms joined forces and formed an Internet-based exchange.
On the other hand, if Dell incorporated smaller companies, they would have had more support and the potential for a larger growth. On the other hand, if they select a well-known firm which is closely related to the computer industry, it could have provided consumers with a high degree of reassurance. For example, combining with Canon or Epson may have been a better B2B E-commerce strategy. These companies are closely related and can all be used with a Dell computer. The B2B exchange is an opportunity for the future of the company, yet it needs to reinvest in research and development before it continues with this idea. Dell recklessly jumped into this market and as a result failed after four months. They were not able to obtain the profits they originally predicted. Luckily Dell is a strong company and was able to survive after the loss. With the future of the B2B commerce looking very bright, it would be a good idea for Dell to continue on this project with an optimistic outlook.
Reference:
Success and Failure of e-commerce
http://www.allbusiness.com/sales/internet-e-commerce/3972-1.html
Dell Computer Corp.: Failure in B2B E-Commerce Strategy
http://web.syr.edu/~efedelma/dell.html
by Foo Seow Min
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