A01 chaf6542 06 se fm indd

  6 

Price sensitivity. The sensitivity of a product or service to price competition on the 

Internet.

  7 

Brand image. The ability to build up a credible brand name for e-commerce.

  8 

Commitment. A strong motivation for using the Internet and the will to innovate.

  9 

Partnership. The extent to which an e-commerce venture uses partnerships (value chain 

relationships) to leverage Internet presence and expand its business.

 10 

Process improvement. The extent to which companies can change and automate busi-

ness processes.

 11 

Integration. The provision of links between underlying IT systems in support of part-

nership and process improvement.

As a counterpoint to Case study 5.3, consider Mini case study 2.4 which shows how SME 

Firebox.com has survived and prospered.

Case Study 5.3

Boo hoo – learning from the largest European  dot‑  com failure

Context

‘Unless we raise $20  million by midnight, boo.com 

is dead.’ So said boo.com CEO Ernst Malmsten on 

18 May 2000. Half the investment was raised, but this 

was too little, too late, and at midnight, less than a year 

after its launch, Boo.com closed. The headlines in the 

Financial Times the next day read: ‘Boo.com collapses 

as investors refuse funds. Online sports retailer becomes 

Europe’s first big Internet casualty.’

The Boo.com case remains a valuable case study for 

all types of business, since it doesn’t only illustrate the 

challenges of managing e‑commerce for a clothes retailer, 

but rather highlights failings in e‑commerce strategy and 

management that can be made in any type of organisation.