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Tuesday, June 17, 2008

Go's com failure and its causes

Hmmm… is time to pass up the second blog already, now the time is 12.17am, just came back from dancing and feel extremely tired. Anyway, works still have to be done, some more my group members started nagging me lo ~ haha
Well, let's start, let me have some introduction first, Kenny here.. Today the topic is an example of an E-commerce failure and its causes.



E-commerce is one of the best tools of the business nowadays by creating unlimited opportunities among consumers and it creates a successful stories. However, in contrast, it also has created a lot of failure example such as GO.com. Started in 1998, Go.com was a combination of Disney's online properties and Info seeks, in which the Mouse had previously acquired a controlling interest.



One of the causes that caused this Go.com became a failure is lack of innovation and creativity. They were trying to mean this Go.com to be a "destination site" much like Yahoo. Although they spent millions and millions on promotion, at the end Disney was still not able to make this website popular. Another cause would be the logo of the Go.com. In early 2000 Go.com was forced to give up its logo because of a legal action taken by Goto.com due to similar logo problems. Because of that, Go.com had to pay $21.5 million in damages to Goto.com by court order.



However, Go.com end by shutting down due to many causes and it took a write off of 790 million from Disney. Therefore, GO.com became one of the top 10 dot-com failures of e-commerce. Until now, Go.com still existing as a function carries only feeds from other Disney Web properties.








1 comments:

inchao said...

we always heard about e-commerce success,such as amazon.com and ebay...but seldom heard about the failure cases. i think most failure is caused by poor marketing strategy,it is very important to an e-commerce site...they must make people know about it and it is useful to them...other than that innovative is very important also