An example of E-Commerce failure is Kozmo.com. Kozmo.com was one of the leading delivery companies on the Internet in the United States. People would order a wide variety of product from a DVD rental, or just a single pack of gum and they would delivery your good within an hour and not charge for delivery. It was founded by young investment bankers Joseph Park and Yong Kang in New York City in March 1998. Kozmo.com serviced nine major urban areas, including Boston and San Francisco.
The main failure of Kozmo.com was too much competitive around the same area and challenging. At their peak, Kozmo.com was operating in 11 cities including San Francisco, Boston, New York and Seattle. At that time the competitors of Kozmo.com such as Webvan, Sameday.com and Pink Dot, all focused on a single urban area instead of trying to start operations in multiple markets simultaneously.
Besides that businesses of Kozmo.com had not been profitable. They delivered the usual grocery and drug store type items such as food and shampoo, but became too ambitious when Kozmo decided to deliver things like DVD players and other items that were not so cost effective. Kozmo was also in other various cities such as Houston and Boston. Due to offering too many different products and expanding in too many locations too quickly, the businesses collapsed.
Not only is that, Kozmo.com seem does not have a very wide client base due to the range of products that Kozmo.com would be able to provide are limited. Kozmo.com’s catalogue featured five main product categories that are entertainment, meals, grocery, drug store and gift shop. And the market of people who really need a DVD player or sweater in an hour is very small. Therefore, Kozmo.com has closed the operations.
The main failure of Kozmo.com was too much competitive around the same area and challenging. At their peak, Kozmo.com was operating in 11 cities including San Francisco, Boston, New York and Seattle. At that time the competitors of Kozmo.com such as Webvan, Sameday.com and Pink Dot, all focused on a single urban area instead of trying to start operations in multiple markets simultaneously.
Besides that businesses of Kozmo.com had not been profitable. They delivered the usual grocery and drug store type items such as food and shampoo, but became too ambitious when Kozmo decided to deliver things like DVD players and other items that were not so cost effective. Kozmo was also in other various cities such as Houston and Boston. Due to offering too many different products and expanding in too many locations too quickly, the businesses collapsed.
Not only is that, Kozmo.com seem does not have a very wide client base due to the range of products that Kozmo.com would be able to provide are limited. Kozmo.com’s catalogue featured five main product categories that are entertainment, meals, grocery, drug store and gift shop. And the market of people who really need a DVD player or sweater in an hour is very small. Therefore, Kozmo.com has closed the operations.
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