One of the failure examples in e-commerce is Go.com.
Go.com is also known as The Go Network. It was a web portal first launched by Jeff Gold in 1995. It was an entertainment portal featuring one of the Internet's first web-based chat room networks. Go.com was acquired from Gold by the Walt Disney Company. It is a combination of Disney's online properties and Infoseek since 1998 and now operated by Walt Disney Internet Group. The site originally started off as a search engine, using a distinctive green spotlight logo. However, a complaint of similar logos filed by Goto.com has forced Go.com pay $21.5 million for the damages of Goto.com and it is changed its logo as well.
Go.com has expanded by Disney and used as a hub for the other Disney related sites, cush as ABC.com and Disney.com in 1998. In addition, Go.com also hosted its personal web pages. In early 2000, Disney announced that the general portal would now focus more on entertainment since its visits has dropped. Almost all Disney and ABC sites has migrated into Go.com domain, and the sites was mentioned at the end of the programs of Disney and ABC networks.
However, Disney announced in January 2001 that Go.com and its search engine would be closing since Disney was unable to make Go.com popular enough to validate the millions spent on the promotion. Disney took a write-off of $790 million or 37 cents per share for the shut down of Go.com. The shutter of Go.com laying off approximately 400 employees and retiring the Go.com tracking stock. Go.com was still exists, but it carries only feeds from other Disney Web properties.
The reasons that led to the failure of Go.com are:
Go.com is also known as The Go Network. It was a web portal first launched by Jeff Gold in 1995. It was an entertainment portal featuring one of the Internet's first web-based chat room networks. Go.com was acquired from Gold by the Walt Disney Company. It is a combination of Disney's online properties and Infoseek since 1998 and now operated by Walt Disney Internet Group. The site originally started off as a search engine, using a distinctive green spotlight logo. However, a complaint of similar logos filed by Goto.com has forced Go.com pay $21.5 million for the damages of Goto.com and it is changed its logo as well.
Go.com has expanded by Disney and used as a hub for the other Disney related sites, cush as ABC.com and Disney.com in 1998. In addition, Go.com also hosted its personal web pages. In early 2000, Disney announced that the general portal would now focus more on entertainment since its visits has dropped. Almost all Disney and ABC sites has migrated into Go.com domain, and the sites was mentioned at the end of the programs of Disney and ABC networks.
However, Disney announced in January 2001 that Go.com and its search engine would be closing since Disney was unable to make Go.com popular enough to validate the millions spent on the promotion. Disney took a write-off of $790 million or 37 cents per share for the shut down of Go.com. The shutter of Go.com laying off approximately 400 employees and retiring the Go.com tracking stock. Go.com was still exists, but it carries only feeds from other Disney Web properties.
The reasons that led to the failure of Go.com are:
- The contents and services provided were inferior.
- Fail to attract enough consumers.
- Online advertising slumped and fail to attract enough advertising revenue.
- Compete head-on with the major web portal sites that serves as entryways to the internet operated by Yahoo Inc., America Online Inc., and Microsoft Corp.
- Disney underestimated how much ground the company need to cover to catch Yahoo.
- It is just a portal that wasn't able to get traction in a leadership position.
- It made little sense to spend millions to promote a new umbrella brand.
In a short word, Go.com needs to continue invest in its contents and commerce sites grow them. On the other hand, consumers' needs and demand need to be identified to attract more consumer and online advertisement. Disney needs to shift and implement operation strategy for Go.com in order to compete with those strong competitors like Yahoo and achieve long lasting success.
Related links:
- http://en.wikipedia.org/wiki/Go.com
- http://articles.latimes.com/2001/jan/30/business/fi-18700
- http://www.thefreelibrary.com/DISNEY
-Mun Yee-
can't imagine that Disney oso can't do it well
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