Pets.com Nhóm 2: 1- NT Phạm Uyên Phương 2- Lê Vũ kim Phượng 3- Võ Thị Phương Thảo 4- Nguyễn Thị Thùy Nhung 5- Huỳnh Mai Bảo Quyên 6- Nguyễn Duy Tin 7- Nguyễn Thị Thanh Nga Huflit University International Business Management Faculty
Was One of the most visible of the thousands of e-commerce firms
Was sprouted up in the late 1990s
Did make significant investments in infrastructure such as their warehousing
Slogan “ Because Pets Can’t Drive”
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)
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.
Passing its cost reductions on to customers through lower Prices
Concentrate on product design
-> Kept its sales and profits growing
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 – succeed
Realized 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 services
To 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