An example of an E-commerce failure and its causes

DrKoop.com was launched in July 1998 by Donald W. Hackett and John F. Zaccaro with $6 million from Superior Consultant Company Inc., a healthcare IT firm in Bloomfield, Michigan. Drkoop.com was a leading global healthcare Network which provides a measurable value to individuals from all over the world. Its mission was to provide information and resources to consumers who need it to become active participants in the management of their own health.

During the 1998, in the operating revenues, it notched just $43,000, but that didn’t keep the company from going public in June 1999 and achieving, briefly, a peak market with capitalization of $1 billion.

Due to their unimpressive and non-persuaded marketing capacity, DrKoop.com became bankrupt and is not able to face the challenges in market via Internet. Later, DrKoop.com, the medical information Web site that was once valued at over $1 billion, was sold to a Florida company for $186,000 in cash.

Moreover, their shares, sold to the public in June 1999, rose as high as $45.75 three years ago, before falling with the collapse of the Internet stock bubble. Andrew Zipern (NYT)

There are several points that DrKoop.com fail:

· E-commerce has perceived by the management as important to achieve the goals of the company. However, the DrKoop.com stills an unrealized goal of the health-care industry.

· The Company sank into a cash crisis for the trademark, website and others.

· It is difficult to build the trust and brand value associated with his name to the consumer via internet. Moreover, it is related the health, so the consumer need more approval and confidence.