This website uses cookies to ensure you have the best experience. Learn more

E Commerce Levi Strauss: Key Reasons For The Failure Of Its B2 C Site, Consider And Explain How The Company Might Have Utilised Its Existing B2 B E Commerce To Expand Successfully To B2 C

2211 words - 9 pages

1.0 IntroductionThe Internet has been compared to the California Gold Rush of 1849 in which Levi Strauss built a Fortune 500 company by supplying miners with clothing (White Paper, Building an E-commerce Network). Levi's managed to reap from the opportunities of the California Gold Rush. However, in an attempt to achieve the same success with the Internet and ecommerce, Levi's failed to succeed. This paper investigates key reasons for such failure and identifies generic critical success factors as a guide for other business who wishes to follow in the path of ecommerce. ü2.0 Levi'sIn the 1990s Levi's Strauss was well regarded as a clothing brand by fashion minded young consumers. However since then, market share has dropped 16.9% and sales have decreased $1.1 billion from 1996 to 1998. The reason for such poor performance was blamed on missed opportunities on changes in fashion and not meeting new tastes. The 'cool' image of the brand was also slipping. The company was criticised for focusing too much on re-engineering the company, which took focus off the product. In order to reconnect to young people, the company set up a community orientated web site that would enable feedback from consumers that would lead to marketing decisions (Oz, 2002 p141). Levi's expected that the site would help set them apart from competitors (Olsen and Wolverton, 1999). üIn 1998, the web site offered the consumers the ability to purchase products exclusively on the Levi's web site. This upset key retailers who were prohibited from selling Levi's and Dockers from their own web sites (Caylor, 1999).Just under a year later, Levi's announced that they were closing the web site after poor sales and cost of running. The online sales were taken over by retailers Macy's and J.C. Penney's.3.0 Key Reasons For FailureLevi's looked to ecommerce as an opportunity to remove the middleman and sell directly to consumers. Selling on the Internet seemed like a sound strategy for Levi's. Their target audience of generation X and Y customers were more connected to technology and the Internet than any other age group at that time (Standley, 1999). However, this opportunity proved more difficult and expensive than expected. Most manufacturers are more used to distributing large orders to retailers than dealing with single orders of a pair of jeans and dealing directly with the consumer (Olsen and Wolverton, 1999).Their Canadian web site was developed within only 60 days (Oz, 2002 p141). The time taken into developing and planning the web site was too short for such a big company with so many products. In addition, Levi's lied to their retailers about the web site and told them that it was an excellent opportunity for both parties to gain information on customers. The retailers would not have appreciated being kept in the dark about the web site and would have wanted to be more involved. Only one month after the Canadian site opened, Levi's started work on the US site. One month...

Find Another Essay On ECommerce - Levi Strauss: key reasons for the failure of its B2C site, consider and explain how the company might have utilised its existing B2B e-commerce to expand successfully to B2C

Supply Chain B2B Website Compared to B2C

968 words - 4 pages site (scmr.com, 2008).Business-to-business (B2B) is the exchange of products, services, or information between businesses rather than between businesses and consumers, or e-commerce between businesses.Business-to-Consumer (B2C) is mainly retail marketing on the Internet. Business-to-Consumer is the method that online businesses use to sell their products directly to consumers.ComparisonHowever, several differences in how the value chain strategy

The Key to A Successful E-commerce Site

1540 words - 6 pages The Key to A Successful E-commerce Site Despite the rapid growth of E-commerce sites, 43 percent of the them fails, and the difference between the success and the failure is consumer experience, according to Ecommercetimes.com. The Dotcom Survival Guide reported there is still one resource left untapped that can save dotcoms from failure. It's the one resource that historically is most ignored in favor of ads, press, and flashy features

Differences between B2B and B2C

900 words - 4 pages materials that are to be processed into final products. Businesses engage in value adding activities, and this is why most of the products bought by businesses have to be processed into final products. On the other hand, B2C activities involve the sale of finished products. Customers buy products for final consumption and they have no intention of adding value to the purchased products (Bussler, 2003). In terms of risks, B2B activities are much

"The Supply Chain, B2C vs. a B2B"

660 words - 3 pages processing - inventoryWarehouse - inventory management and order picking and packingDistribution - returns and reverse logisticLocal delivery - customer receive productBusiness to business (B2B) means the businesses that sell to other businesses. B2B serves a partial number of people; loads of times B2B sites are the mainly major B2C sites and most important B2B makes profit. For example, today, Intel takes orders over the net from its customers and

B2B / B2C Marketing

772 words - 3 pages not. Essentially marketing is the linking of a producer (or potential producer) of any given product or service offered with customers, both existing and potential. This is also true for all online businesses that conduct between business to consumer (B2C) or business to business (B2B). Marketing research is informed through several social sciences, particularly psychology, sociology, and economics.The first stage in planning any campaign is to

Marketing - B2B/B2C

606 words - 2 pages different functional areas impact B2B marketing promotional strategies. When an organization makes a purchase, personnel from several departments will together determine what the organization needs. Each different department may have a separate set of needs and interests, which may influence how marketers promote their products. Additionally, consumers can go to shopping malls for their purchases. Few business shopping malls exist, so trade shows

Supply Chain Differs On A B2C Site Vs. B2B Site

1067 words - 5 pages , inventory, and storage and handling across the entire supply chain while improving the quality of service for each customer.The major difference between B2B (Business to Business) and B2C (Business to Customer) in internet terms is the role of the B2B website. B2B concerns itself primarily with supply chain management. These are portals that allow businesses to deal directly with their suppliers and distributors online, allowing electronic

Assignment: Outline the potential problems facing organizations who wish to develop a revenue stream from B2C e-commerce

2989 words - 12 pages potential conflict under the channel conflict3.5.3 Change ManagementSolution3.5.4 E-FulfillmentCase Study 1Case Study 2Solution4 ConclusionBibliographyTopicOutline the potential problems facing organizations who wish to develop a revenue stream from B2C e-commerce.1 BackgroundThe rapid advancement of technology and its application by the business has helped more and more businesses proceeding cautiously into the world of web marketing, the electronic

B2C Web Site Security

2366 words - 9 pages Abstract In this report, the author endeavours to present the how the security issues generally presented on the B2C web sites can assured by technical controls and educating customers. The report presents levels of end-to-end security components that include: physical system security, operating system security and network security. With advent of web applications that are now being used extensively for deploying e-commerce applications, author

B2B + B2C Marketing Strategies for (FreshDirect & SYSCO)

1029 words - 4 pages the following paper we will discuss how eMarketing differs on an actual B2B site compared to an actual B2C site. The organizations that will be analyzed on their eMarketing are SYSCO as a B2B entity which is the largest foodservice marketing and distribution company in North America and FreshDirect as a B2C entity that is the most successful online supermarket which delivers right to your home.B2C Marketing Strategies Discussion for

B2C and B2B Supply Chain Differences

1206 words - 5 pages the internet by selling goods or services to a customer online. B2C is more often described as online selling, trading, and the like. EBay is one example of a business which is conducted through the internet. The customers would only have to go online to select and buy their purchases. Another example of a B2C site is Amazon.com. Amazon.com does all their retailing online and thus is the perfect example for a B2C site.In a B2C e-commerce the

Similar Essays

How The Supply Chain Differs On A B2 C Site Compared To A B2 B Site

1049 words - 4 pages (SearchCIO, 2006), or e-commerce between businesses. Electronic technologies and most importantly, the Internet have drastically changed the B2B marketplace. Procurement processes, or the purchase and sale of materials and supplies between businesses and a key element in the B2B supply chain, have completely changed and are considered to be fluid in the most competitive systems. Some examples of categories where B2B websites may fall include the

Supply Chain B2 C Site Versus B2 B Site

1075 words - 4 pages through the internet. This includes customers logging into a website for a particular B2C site and ordering a product or service as well as finding information on a specific product as well as documents transferred from a business to a consumer. The B2C department stores see the benefits of conducting e-commerce in an increase in demands of products, a lower cost to reach global markets, and cost savings. Customers of B2C sites have an advantage

Write A 3 4 Page Paper That Explains How The Supply Chain Differs On A B2 C Site Compared To A B2 B Site. Give Specifics

1189 words - 5 pages /content/eReader.hThe Business Link. (n.d.). Alberta efuturecentre. Retrieved Febuary 20, 2008, from Alberta efuturecentre: http://www.e-future.ca/alberta/pdf/efc_supply_chain_basics.pdfWalsh, K. (2000-2001). Business-to-consumer E-Commerce . Retrieved Febuary 20, 2008, from http://projects.bus.lsu.edu/independent_study/vdhing1/b2c/

Submarino.Com: The Challenges Of B2 C E Commerce In Latin America

636 words - 3 pages through the end of 2000. Investment banks and other institutions started reappraising Internet Business Models. They realized that the same rules applied to e-commerce as to brick-and-mortar companies and that financial statements and credit ratings of most Internet companies looked dreadful.2. Challenges of the Latin American Market - Although the Internet sector in Latin America was growing, Latin America presented several challenges for continued