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1. Contrast the marketing strategy of Boo.com with successful online travel and leisure retailer booking.com. Suggest what made the difference between success and failure.
2. Discuss which market assumptions and decisions led to Boo.com’s inevitable failure?
3. Explain why the vision of Boo’s founders was ‘ideas before their time’.
4. Provide 2 examples of e-retail techniques adopted by boo.com that are now commonplace.
Sample Answer
The Rise and Fall of Boo.com: Lessons Learned in E-Retailing
Thesis Statement: By contrasting the marketing strategy of Boo.com with the successful approaches of Booking.com, it becomes evident that the former’s failure can be attributed to market assumptions, decisions, and a vision that were ahead of their time. Despite this, Boo.com did introduce e-retail techniques that are now commonplace in the industry.
1. Contrasting Marketing Strategies
Boo.com, a 1990s e-commerce venture, aimed to revolutionize online fashion retail with an ambitious and costly marketing strategy. Its focus on branding, style, and user experience was ahead of its time but ultimately led to its downfall due to excessive spending and a lack of focus on core business operations. In contrast, Booking.com succeeded by prioritizing usability, customer experience, and a data-driven approach to marketing. The latter’s focus on providing a user-friendly platform, offering tailored recommendations, and leveraging customer reviews and feedback resonated with consumers and facilitated its success.
The difference between success and failure can be attributed to the effective execution of marketing strategies. While Boo.com emphasized style and brand image, Booking.com focused on practicality, user feedback, and data-driven decision-making.
2. Market Assumptions and Decisions Leading to Boo.com’s Failure
Boo.com’s assumptions about consumer behavior and preferences were overly optimistic and did not align with the market realities of the time. The company made decisions based on the assumption that consumers were ready for an immersive, interactive, and stylish online shopping experience. However, the technology and internet infrastructure of the late 1990s were not advanced enough to support Boo.com’s vision, leading to slow loading times, compatibility issues, and a cumbersome user experience. Additionally, the company expanded too quickly into multiple markets without fully understanding local consumer behaviors and preferences, leading to significant financial strain.
3. The Vision of Boo.com Founders as ‘Ideas Before Their Time’
Boo.com’s founders were visionaries who aimed to create an immersive online shopping experience that incorporated interactive features, 3D visualization, and a focus on fashion and style. However, their vision was ahead of its time due to technological limitations and consumer readiness. The internet infrastructure was not equipped to support the level of interactivity and visual richness that Boo.com aspired to offer. Additionally, consumer behavior and trust in online transactions were still evolving, making it challenging for Boo.com to gain widespread acceptance and adoption.
4. E-Retail Techniques Adopted by Boo.com Now Commonplace
Despite its failure, Boo.com introduced several e-retail techniques that have become commonplace in the industry today. Two notable examples include:
a. Rich Media Content: Boo.com was one of the first e-commerce platforms to incorporate rich media content, such as 3D visualization and interactive features, to enhance the online shopping experience. Today, rich media content is widely used by e-retailers to engage customers and provide immersive product experiences.
b. Personalization: Boo.com attempted to offer personalized recommendations and styling advice based on user preferences and browsing behavior. This approach laid the groundwork for the personalized recommendation engines that are now ubiquitous on e-commerce websites, including the successful implementation by Booking.com.
In conclusion, Boo.com’s failure can be attributed to its overly ambitious marketing strategy, unrealistic market assumptions, and a vision that was ahead of its time. However, the company’s innovative approach paved the way for e-retail techniques that are now integral to the success of modern online retailers.
