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Alcampo vs Peapod 2002-1-12 CASE STUDY Li Haiyun Wen Renyi Zhao Yu Zhuang Wei CASE1 (Spain) Peapod Inc. Online grocery company in U.S. Corporation Development Revenues growth orders soar Orders: 93700 in 3rd quarters of 1997, 43700 only during the same period in 1996; Revenues: 41.6 million in first 9 months in 1997, up by 111% from 19.7 million for the same period in 1996; Revenues from online marketing services: 3 million to 6 million; Revenues from member and retail services: 1.8 million(1996) to 3.4 million (1997) No. of fulfillment centers: 37 more, cover 6.6 million household totally. Problem: still incurred losses, facing the financial problem,why? Business pattern of Peapod IT System Client layer Reside on the customer’s computer; create the user’s interface by following instructions from the application server; run the application and return input to Peapod server Application servers Proprietary targeting engine Business support system Fulfillment management application Accounting systems Database Maintain and manage the data associated with the Peapod application. What has Peapod done so far for its business? Peapod’s discussion and information forums (submit recipes and win the coupons, “American Heart Association”. etc) Selling the IT system and Know-how to its select retailers. (Cole Myer) Diversification Strategy. FTD-branded Flower shop, premium wines and greeting cards and other retail relationships. Interactive marketing services. From late 1995, built relations with several consumer goods and service companies. Provides a variety of bundled interactive marketing products and services. Banner Advertising \ Enhanced Content Advertising \ Electronic Coupons \ Stimulus response Testing Still incurred the loss and Why? 网络公司是命里注定的烧钱公司 基本网络的架构就如同基础设施的建设; 系统维护、更新和维持正常运作的成本非常高; 改变和维持客户消费行为的成本过高; 过于庞大的服务范围使得运营成本过高。 建设自己的配送体系并加以维持正常运营的成本过高 大量的车队 许多消费者没有按时收到货物,或者货物发送错误, 导致公司补偿成本增加。 Suggestions Focus on certain service are
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