Case Study (B)

3 pages
November 2000
Reference: IMD-3-0896

This case is a follow-up to the A case, titled (A). It chronicles what happened at the company between May and July 2000, prior to the company’s sudden sale to Wal-Mart. (Instructors should note that the real name of the company is The case authors intentionally disguised the identity of the company to conceal the outcome.) In the B case, Richard Shane, the company’s founder and first CEO, explains what mistakes were made and what he has learned from running an Internet company. In particular, Shane discusses the challenges of working with venture capital firms and how Internet companies should avoid a strategy of spending unlimited amounts to acquire customers.

eCommerce, Internet
United States of America
Field Research
© 2000
Available Languages
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