Sunday, February 1, 2009

An E-commerce failure and causes

The emergence of Internet has created a tremendous opportunities for a large number of people and businesses. There are many businesses taking advantage of the opportunities to create business activities which are profitable and successful. However, there are still majority of them have skidded to a halt such as, Red Rocket and etc., an interactive website that provides thousands of toys, children's products, learning tools and resources to parents and educators, believes that learning is an interactive process. Toysmart celebrates the joys of childhood, parenting nad learning through play. Walt Disney Co. had invested $20 million in Toysmart in year 1999. In year 2000, Toysmart chief executive David Lord confirmed the online toy company is ceasing operations.

According to Heather Dougherty, an analyst with e-commerce research firm, failed to build a unique brand that would keep parents coming back among the competition from other online toy retailers such as and Unlike which is using customization, Toysmart failed to bring something unique, such as customized shopping. Besides that, Toysmart suffered from increased competition and a slumping market. Toysmart was under the pressure from giants, etoys and, which have wider toy selections.

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