Case study 2 Boo hoo - learning from the largest European dot.com failure Context Hedelin who was also the financial director at bokus, and Unless we raise $20 million by midnight, boo.com is at the time they were perceived as experienced Euro- dead.' So said Boo.com CEO Ernst Malmsten on 18 May pean Internet entrepreneurs by the investors who backed 2000. Half the investment was raised, but this was too them in their new venture. little, too late, and at midnight, less than a year after its launch, Boo.com closed. The headlines in the Financial Company vision Times the next day read: 'Boo.com collapses as investors The vision for Boo.com was for it to become the world's refuse funds. Online sports retailer becomes Europe's first online global sports retail site. It would be a Euro- first big Internet casualty.' pean brand, but with a global appeal. Think of it as a The Boo.com case remains a valuable case study for sports and fashion retail version of Amazon. At launch it all types of businesses, since it doesn't only illustrate the would open its virtual doors in both Europe and America challenges of managing e-commerce for a clothes with a view to 'amazoning the sector'. Note, though, that retailer, but rather highlights failings in e-commerce Amazon did not launch simultaneously in all markets. strategy and management that can be made in any type Rather it became established in the US before providing of organisation. local European distribution. Company background The Boo.com brand name According to Malmsten et al. (2001), the 'Boo' brand Boo.com was founded in 1998 by three Swedish entre- name originated from film star Bo Derek, best known for preneurs, Ernst Malmsten, Kajsa Leander and Patrik her role in the movie 10. The domain name 'bo.com' was Hedelin. Malmsten and Leander had previous business unavailable, but adding an 'o', they managed to procure experience in publishing, where they created a specialist the domain 'boo.com' for $2,500 from a domain name publisher and had also created an online bookstore, dealer. According to Rob Talbot, director of marketing for bokus.com, which in 1997 became the world's third- Boo.com, Boo were 'looking for a name that was easy to largest book e-retailer behind Amazon and Barnes & spell across all the different countries and easy to Noble. They became millionaires when they sold the remember . . . something that didn't have a particular company in 1998. At Boo.com, they were joined by Patrik meaning