The Webvan Group Case Analysis TABLE OF CONTENTS ISSUE STATEMENT 3 ANALYSIS OF CASE DATA 3 Vision and Mission 3 PESTLE Analysis 4 SWOT Analysis 5 Competitive Analysis – Porter’s Five Forces 6 Value Disciplines 7 Key Mistakes 8 RECOMMENDATIONS 9 Key Drivers for the Recommendation 9 Revised Webvan Vision 9 Revised Webvan Mission 10 Revised Webvan Business Model 10 Revised Webvan Revenue Sources 10 ACTION PLAN 10 CONCLUSIONS
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company’s external opportunities and threats. Strength Webvan has many strength within their operational practices as well as their marketing practices. One of Webvan’s strength is their ability to provide good customer service to their consumers. Webvan does not charge membership fees and waives delivery charges for orders over $50. Their ability to fill orders accurately and deliver them on time is another strength. For both of these areas‚ Webvan has an upper ninetieth percentile ranking. With their
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Webvan Q1. Describe the Webvan business model and then analyze it using the value chain and competitive forces models. What were the assumptions that drove this business model? Ans: Webvan’s Business Model used the following Points: 1. Revenue in relation to capital investment and margins. 2. Margins in the US grocery business. 3. Obtaining customers at affordable cost. 4. Gross margins compared with cost structure Analysis: 1. According to Webvan huge upfront investment was to be considered Adequate
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Webvan: Groceries on the Internet E-commerce MGNT 671 February 22‚ 2000 Ben Neely Brad Smith Sharon Winemiller Background and Problem Statement – Webvan was started in 1996 by Louis Borders and was established to sell groceries over the World Wide Web. George Shaheen resigned as CEO of Anderson Consulting to take advantage of the opportunity to become CEO of Webvan. Webvan‚ which originated as an online grocery service‚ delivers food (including its BestYet label‚ a co-brand
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On this paper we will explain about Webvan‚ when it was established‚ how the people welcoming the idea of having such service through the network and will discuss if Webvan achieved the goals or did it made any profit from its business‚ why they didn’t success and the reason for failed these companies. Webvan was the name of a company and they were doing online grocery delivery business. In 1996 webvan started grocery delivering services it offered customers the convenience of shopping from home
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to business; it requires building on the proven principles of effective strategy” The most successful example of an internet business that built its strategy on a previous effective one is Tesco’s online service. However‚ some companies‚ such as Webvan fell into the category that Porter (2002) criticises and failed in the online grocery sector. 2.0 Tesco.com The retail giant‚ Tesco has cornered 30 percent of the UK grocery market‚ a figure which is approximately double the collective share
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& Online Grocery Purchases 8 Appendix: Figure 2 -- Webvan vs. Brick & Mortar Grocery‚ Order Size & Frequency 9 Appendix: Figure 3 Avg Daily Unit Break-Even Analysis 10 Appendix: Figure 4 Adding Capacity 10 Appendix: Figure 5 Quality Functional Deployment: House of Quality 11 Appendix: Figure 6 Potential Changes to Delivery Routes 12 Appendix: Figure 7 -- Marketing-Operations Coordination Model 13 Executive Summary Webvan was a short-lived Internet grocer that unsuccessfully
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Executive Summary Webvan was founded by Louis Borders‚ the co-founder of the Borders bookstore in 1971. He envisioned an Internet business model that would provide consumers with a grocery shopping solution that saved time and effort without sacrificing the quality‚ selection or low prices that they had come to expect of traditional grocery stores. With this idea‚ Webvan came out. This company is certainly one of the most publicized ventures in e-business. The current problems Webvan face are how to
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1061103678 AZRIF REDZA BIN BADZLY 1081103812 AZFAR BIN KADIR 1111114625 MOHD SHAHRIL BIN SULAIMAN 1111114242 Online Grocer 1. What are the reasons you think WebVan failed? There are many reasons why Webvan failed so spectacularly but I’m going to focus on Webvan’s management team and its technology as the panicle reasons for their spectacular failure. To the outside observer‚ the management team is comprised of the ultimate all-star
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stores have been more successful in online delivery from their local physical stores. For instance‚ a leading example of dot-com excess was the flame out of online grocery start-up Webvan in 1999. Webvan burned through $1.2 billion from investors in order to launch its online grocery business in ten markets. Webvan went bankrupt in 2001. FreshDirect was founded in 1999—just prior to the burst in the Internet bubble. The business plan for online groceries was to focus on a high-density‚ single
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