Pets.comNhóm 2:1- NT Phạm Uyên Phương2- Lê Vũ kim Phượng3- Võ Thị Phương Thảo4- Nguyễn Thị Thùy Nhung5- Huỳnh Mai Bảo Quyên6- Nguyễn Duy Tin7- Nguyễn Thị Thanh Nga

Huflit University

International Business Management Faculty

Pets.com

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

Was sprouted up in the late 1990sDid make significant investments in

infrastructure such as their warehousing Slogan “ Because Pets Can’t Drive”

About Pets.com

Buying Pet supplies over Internet didn’t prove to be a profitable business model.

Pet food tends to be modestly priced and expensive to ship and available in most supermarkets and retail stores

Pets went out of business in the summer of 2000, selling to Petco.

Why Pets.com die?

the cost of advertising selling merchandise for approximately

one-third the price it paid to obtain the products

tried to build a customer base by offering discounts and free shipping (the costs of shipping for heavy bags of cat litter and cans was very high)

Dell Computer

Has become a large and profitable company by selling computers online

Allow customers to custom design computers online

Have the products built and shipped within three business days

Dell’s Continual efforts at

Improving after-sales service even as Dell's energy went into providing an affordable product and reliable delivery.

Minimizing costsPassing its cost reductions on to

customers through lower PricesConcentrate on product design

→Kept its sales and profits growing

Dell’s competitors

Have attempted to copy many of Dell’s Web site features and internal systems

→Dell did not have to compete directly against the more established PC manufacturers.

The dramatic difference between these two organizations

Managing in an electronic environment is significantly different from managing in traditional organizations

Dell understand this difference – succeedRealized tremendous benefits from its application of information technology.Had a simple but powerful vision: that personal computers could be built to order and sold directly to customers.

1.1- How technology has assisted a company like Dell Computer

Dell Computer realized tremendous benefits from its application of information technology.

IT has been used to create competitive advantages at the operational level

IT has been used to introduce an unprecedented type of strategic information management.

PC made up of little more than software from Microsoft and chips from Intel, was rapidly becoming a commodity product.

1.2 Managerial changes are necessary to ensure that the full benefits of technology are reaped.

have company's direct business model as widely accepted outside the United States as it is across Dell's home market.

find enough talented people to help the company capitalise on the opportunities available in overseas markets.

2.1 – Going out of business when the realities of dot-coms hit, Pets.com wasn’t not simply a “flash in the PAN”

It is a kind of e-commerce - very convenience for customers, Increases consumers' ability to gather information about products and prices

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

Success in building brand recognition

2.2 - The demise of Pets.com might be attributable to poor management of the company

Failed to research how they promoted their product.

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

can greatly improve sales Mistakes made was that they were more

interested in attracting visitors to their website but not necessarily winning them over to customers.

With direct-to-customer business model, Dell sells 90% of its PCs to direct customer, this key business model help 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 business days.

3- A company like Dell computer is customer responsive

SUCCESS VS FAILURE ONLINE BUSINESS

VERSUS