2. • 1995-1999 the U.S. experience tremendous growth
in I.T. sectors.
• Mantra was “get big, fast”.
• Two company emerged The Petstore.com and The
Pets.com.
• Then there was failure of these two leader
companies.
CASE FACTS
3. Growth of IT industry.
Venture capital money flowed freely.
Dual aspect-online & outlet
People started using online sites
Less money required
Online dog food products
WHY WAS ONLINE PET RETAILING A
PRIME INDUSTRY FOR INVESTMENT IN
1999
4. WHAT ARE THE KEY ELEMENTS
OF THE BUSINESS MODEL?
Key partners:
Doctor
Pet food manufacturer
Logistics partner
Pet trainers
Value preposition
Free doctor service for 6 months.
Variety
Clothes & accessories for Pet.
Vaccinations
Key resources
Pet trainers
Employees
Key activities
online selling of products
customer care
Customer relationship
Trust
Quality
After sales service
Customers
pet lovers
Rich people
security
Cost
Ware house
Maintenance of
pets
Cost of pets
Employees
Revenue
Direct sales
5. In the beginning they were rational because
there were only this site.
But there were also some drawbacks.
WERE THEY RATIONAL THAT TIME
6. Between 1998-2000 internet sector = to
6%.
Had 1000% returns.
7000 – 10000 news dot com companies
opened up.
The dot com crash, which nobody
expected.
3892 companies were sold 962 bankrupt.
DOT COM AND IRRATIONAL
EXUBERANCE USED
INTERCHANGEABLY