Electronic commerce is commonly known as E-commerce. It describes the process of buying, selling, transferring, or exchanging products, services and information via computer network. Nowadays, most of the companies choose to convert their business nature into e-commerce system so called online retailer. However, through e-commerce, some of the online businesses succeed while some are failing due to a number of different factors.
The increasing use of internet by consumers gave rise to an information boom to health-care consumers. For example, DrKoop.net an online provider of medical information for doctors and consumers. DrKoop.net was launched in July 1998 by Donald W.Hackett and John F.Zaccaro. The vision of DrKoop.net is assisting people and their doctors to access personal records, prescriptions history, medical exam results and general health-care information. In order to generate revenue, DrKoop.net started sold advertising rights that would increase sales and to promote their products to the communities. DrKoop.net started off strong, generated revenue of $43000 during the year 1998, however, they didn’t last longer after the year of 1999, and they failed to achieve success and went into bankruptcy eventually.
There are several causes that DrKoop.net fail:
The increasing use of internet by consumers gave rise to an information boom to health-care consumers. For example, DrKoop.net an online provider of medical information for doctors and consumers. DrKoop.net was launched in July 1998 by Donald W.Hackett and John F.Zaccaro. The vision of DrKoop.net is assisting people and their doctors to access personal records, prescriptions history, medical exam results and general health-care information. In order to generate revenue, DrKoop.net started sold advertising rights that would increase sales and to promote their products to the communities. DrKoop.net started off strong, generated revenue of $43000 during the year 1998, however, they didn’t last longer after the year of 1999, and they failed to achieve success and went into bankruptcy eventually.
There are several causes that DrKoop.net fail:
- Lack of organizational structure of cost control due to the founders lack of business experiences.
- The company lack of financing planning. This make them incurred in a big loss when compete with others competitors. The corporation continued to spend their free-spending practices such as employees’ in-house and free lunches, even though the advertising revenue alone could not support the huge amount of operating expenses.
- It is very important in achieving company’s goals. However, the company has an unrealized goals and deviate from their original vision and mission. They were getting focus on the internal growth without adequate planning for future.
- They trying to sell the wrong product online. Since their products are related to health, consumers will have higher expectation and need more confident and demand for approval from some medical institutions. However, it is very difficult to build the trust and brand value to the consumers via internets.
- DrKoop.net is the target of lawsuits. In July 2000, two class-action lawsuits were brought against DrKoop.net due to the withholding financial information in order to increase the stock price and selling of shares before the end of a six months holding period.
- The company has a poor designed of website. Due to the huge amount of losses incurred by the company, they sank into a financial crisis for their trademarks and websites.
Due to the factors above, DrKoop.net fail to do well in their E-commerce system and had displeased their consumers
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