An example e-commerce failure and it causes

An example of the e-commerce failure was DrKoop.com. Drkoop.com was a leading global healthcare network providing measurable value to the whenever and wherever they need. Mission of Drkoop.com was to empower consumers with the information and resources they need to become active participants in managing their own health.

Because of unimpressive and non-persuaded marketing capacity, DrKoop.com not able to face the challenges in market via Internet and became bankrupt. Later, DrKoop.com was takeover by a Florida company in a very low price (Drkoop.com was once valued at over $1 billion, the takeover price was around $186,600, the value was dropped 81.4 %!).

I think one of the problems is the goal of DrKoop.com stills unrealized. As we know, E-commerce has perceived by the management as important to achieve the goals of the company. Besides that, DrKoop.com have cash flow problem, the company sank into a cash crisis for the trademark, website and others. The business of DrKoop.com is related to health, the consumers need more approval and confidence. However, DrKoop.com fails to build the trust and brand value associated with his name to the consumer via internet. On the other hand, the company also pending lawsuits, this may affect their reputation.DrKoop.com business plan rested on advertising, and there weren’t enough healthcare advertisers to support it and the many other healthcare dot-coms trolling for ad buyers.

In conclusion, the DrKoop.com needs to implementation of effective business strategies and a strategic management process for the betterment of the company desirable for achieving long lasting success of an e-commerce company.