Case Study FURNITURE.

COM
A Start-Up Backed by High-Profile Financial Institutions
In June 1998, Steve Rothschild launched furnituresite.com. In November 1998, Andrew Brooks replaced Steve Rothschild as CEO and changed the name of the company to furniture.com in January 1999. Furniture.com funded $13 million in the first round of financing in June 1998 (Sandoval, 2000). In the following year, the company successfully carried out its second and third round of financing, which brought the total capital raised to more than $50 million.

Products and Services
Furniture.com was a pure-play furniture e-tailer, owning only online store but no physical stores. According to SEC filing, furniture.com offered furnishings for every room, as well as outdoor furniture, mattresses and accessories. It offered products from over 200 manufacturers. Furniture.com had no inventory or warehouses and its products were delivered to customers directly from manufacturers.

Failures of Furniture.com
Interviews with CNET News.com, it has been found that former employees and other sources portray Furniture.com as a blueprint for dot-com disaster, a company obsessed with the belief that an IPO would solve its mounting problems while drumming up sales when it was ill-equipped to handle the business it already had. They describe an atmosphere of chaos and desperation where executives can't wait to quit and where those who stay develop a bunker mentality that breeds mistrust toward their own employees. Since early last month, six executives and two board members have resigned. In the blind rush to go public, sources say Furniture.com lost sight of the fundamentals necessary to run a retail business: At one point, an internal audit showed that the company had shipped $1 million in merchandise and had not billed anyone for it. Some believe that Brooks and other senior executives fell under the spell of perceived invincibility that has touched so many Internet entrepreneurs whose fantasies have been fed by the dot-com fever that has created instant millionaires. "Vendors were screaming for payment, customers were screaming for their purchased goods, and employees were questioned about being seen with former employees," former Furniture.com vice president.

Apple. Furniture.omniture. Oracle. But shipping costs weren't the only problem. A match made in heaven right? Unfortunately.Integration with CMGI and Omniture Furniture. Omniture is the only company in its market to offer a complete Web analytics platform that combines instant response times with the power to view Web data across any dimension. The regional visibility provided by SiteCatalyst and Discover™—an integrated tool within the SiteCatalyst suite that provides unlimited exploratory analysis—enabled the company to address the issue. Furniture. most notably CMGI. acting on information provided by Omniture’s solutions. with Omniture’s flexible platform. offering industry leading scalability and flexibility combined with an intuitive user interface. GM and HP. www. Omniture offers knowledgeable professional service teams. Within the first month of the Omniture deployment. Microsoft. Inc. What we can learn Online stores are usually quite profitable due to lower fixed costs. is the pioneer of on-demand Web analytics technology that delivers the essential intelligence needed by Web commerce leaders and innovators to drive the business decisions that increase ROI. In addition. Proof of its world-class technology and outstanding team. . which was constricting sales growth.com’s ability to analyze and measure business performance by geographical regions and retail partners has greatly improved.com. today announced that Furniture. Omniture is the largest ondemand Web analytics provider by revenue. Utah.com had managed to land some of the highest-profile investors on the Net. shipping a 200 pound couch ends up being expensive (who would've thought?). About Omniture Omniture.increased ROI (Return of Investment) by 60 percent on search marketing initiatives after implementing the Omniture SiteCatalyst™ suite. Omniture has the highest level of retained and satisfied customers in the market. Low fixed costs + furniture sales. often viewed as one of the most savvy venture capital firms of the digital age. and Omniture’s SiteCatalyst is the most mature and comprehensive technology on the market. Omniture. In addition. the largest and fastest-growing provider of on-demand Web analytics and online marketing services. Harden identified a data reporting issue in one of its regions. Gannett. In addition... The shipping costs alone sliced and diced the potential profit margins for this new online startup. AOL. including eBay. experienced in helping customers determine the questions they must ask to arrive at the answers they require. a leading online retailer of the nation’s largest furniture chains. headquartered in Orem. Wal-Mart.com. resulting in a 350 percent increase in conversion rate.com also achieved a 350 percent increase in conversion rates in a key region.

Furniture. it went down in flames. it's a medium. A website is not a business. And if you are able to sell something. and as a result. It also lacked a selection of furniture that anybody other than your great grandparents would want in their home. .com failed to provide any meaningful sales advice to its customers. Period.com never took a holistic enough approach. If your products are junk. Furniture. that helps put you in touch with potential customers. they went under. make sure you factor in all of the factors that are going to eat at your profit margins. nobody is going to buy them. Unsurprisingly.

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