Case Study

Essay by EssaySwap ContributorUniversity, Master's February 2008

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Before the formal launching of, the blueprint of this website seemed perfect. The founders planned to establish a website to sell trendy brand fashion products. Their business model was different from those of other conventional retail websites because its products were sold as full retail price rather than at a discount.

By adopting this unusual business model, had to face some situations. When people buy products in retail stores, they can touch and feel the cloth, try on the outfits, and detect if there is any flaws. Unless some special reasons such as unique brands, special designing style or discount price, people have little incentive to shop online. The prices labeled by were not lower than the prices labeled in retail stores, and the brands they sold could be bought on street; how many customers could be attracted was a question mark.

Besides, they opened many satellite offices in the US and Europe and hired several hundred people before their business started.

It was risky because they did not know if the profit could afford the expenses of such a large company.

There were also some serious technical problems with Although they planned many fancy features in the website, their designs were not user-friendly. They might fail to make sure the functions of the website before launch. The-postponed launch did not help them to solve those problems but caused disappointed and alienated potential customers.

The original idea of was not a bad idea. If they could develop a more easy-use website and not to expand the investment before they gained a certain amount of profit, they might make this project successful.