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  • The Webvan Story: Facilities Inventory Transportation Information Sourcing Pricing

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    Download as PPTX, PDF, TXT or read online from Scribd
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    5 views1 page

    The Webvan Story: Facilities Inventory Transportation Information Sourcing Pricing

    Uploaded by

    vksjn_11

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    The WebVan Story

    Facilities Inventory Transportation

    Pricing

    Information

    Sourcing

    Competitive strategy: Market share through Efficient system and lesser price levels

    Supply Chain strategy: Customer satisfaction through responsiveness


    Why they fail: Made Demand projections, which didnt materialize Failed in managing trade-off between responsiveness and efficiency Tried to Expand Efficiency frontier too much out of time (Well Ahead) Working in low margin industry Cost per degree of customer satisfaction was too high for WebVan model, not charged to customer

    WebVan declared high gross margin of 27% in last of its quarterly reports, but it deemed to die much before that

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