Sample Essay on:
Why eToys.com Failed

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Essay / Research Paper Abstract

This 6 page paper considers the strategy and performance of eToys.com and considers why this internet retailer failed. The writer considers issues such as competitive advantage and used Porters Five Forces Model as a framework from which to examine the way the company competed. The bibliography cites 5 sources.

Page Count:

6 pages (~225 words per page)

File: TS14_TEetoys.rtf

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Unformatted sample text from the term paper:

changes in retail environment and consumers expectations. This has been a new medium for the sale of goods and services, with many companies seeking to gain a first mover advantage as the distribution channel becomes more popular. Companies such as Amazon have taken a long tom to become profitable and although well known they are still on shaky ground. However, other specialist internet companies that sought to gain the same advantage, such as eToys have not been as successful. If we consider this company, which gained computer shopper Best Site award, had good branding and high levels of advertising as well as being a site that was easy to use, then we may learn the lessons that may benefit other companies that are trying to establish and compete in similar conditions (Computer Shopper, 2000). eToys saw the development of the internet, and was a company formed to take advantage of this new emerging medium. For many uninitiated, it seamed that the internet was a licence to print money. For these able to set up they could shorten the value chain to create more value in the sale of goods, cutting out retailers, and in some instances for larger items, selling goods that were then dispatched straight from a manufacturer, in effect the company was acting as an agent, With the further advantage of not requiring bricks and mortar, it is seen by many that there is a greater value with the reduction in barriers that creates an environment where large and small companies can compete on a more even footing. The costs are seen as lower. However, this is not always the case, and it was not a trap that eToys fell into. If we look at the company then we can consider ...

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