Webvan

The STEEP analysis concluded that the gild is in an age of increasing technological advances, which must be maintained and use to sustain operation. Grocery divine services go forth always be demand even In a down or slow providence and before long there be few political or environmental situations that would affect the company. In the following section, wavebands Internal strengths and shakynesses will be discussed as well as the companys external opportunities and threats. StrengthWaveband has many strength within their operative practices as well as their marketing practices. wholeness of Wavebands strength is their expertness to provide good customer service to their consumers. Waveband does not photograph membership fees and waives vacatey charges for orders over $50. Their ability to fill orders accurately and deliver them on time is another strength. For both of these areas, Waveband has an upper 90th percentile ranking. With their state-of-the-art technology, they are able to uphold good sales talk policies with ample distribution centers, while maintaining a wide selection of products and services.The companys butt in site contains good content, has usability ease, and provides policies that ensure consumers privacy and secure credit-card Information processing. flunk One of the companys weaknesses Is that Waveband Is trying to be all things to people. Francis Gaskin of Gaskin PIP ground stated that Waveband Bit off a big gustatory modality. Waveband is taking a chance trying to provide service as well as convenience and to do this for the same set as grocery stores.To be able to do this Waveband has apply a complex business system, which currently has only been proven at owe capacities, nowhere business system, which currently has only been proven at low capacities, nowhere close to the order volume levels for which it was designed. Waveband is currently operating at only 40% of their operating capacity and are having difficulti es In managing rapid growth in personnel and operations. Another centre weakness Is Wavebands lack of a sufficient customer base, order volume, terminal sales or Incoming cash flows.Waveband has experienced high peachy expenditures associated with building and operating their distribution centers systems and technologies. Even though they are realizing a 70% return customer rate, they need to create an even larger initial customer draw to the store site, this is proving difficult since there is a lack of widespread acceptance of the lucre as a federal agency of purchasing groceries and other consumer products. Also, the company does not cater to those individuals who have procrastinating natures and arrest until their shopping is a necessity.Wavebands technology and delivery requirements cannot operate efficiently comme il faut to offer same day delivery. A final reason for their weak customer base is that Waveband does not offer bulk products at discount prices as buying op tions, which has recently increased In popularity. Opportunities One of the opportunities that Waveband needs to focus their attention on Is their 70% paraphrase customers order level. To maintain peak operation, a company must not only work to bring In new customers, but It must malting the customer based that already has.Maintaining its repeat customer base will be a more cost efficient next to ultimately on a survey of the least liked household tasks. If Waveband can obtain these customers for the first order and delivery, they have a laborious likelihood that the customers will try another order. Experts predict that American Internet access will triple by 2003 and the online grocery industry is anticipate to rise to upwards of one billion dollars. The potential consumer base is ontogeny and if Waveband can attract these consumers, they will receive high levels of revenue.Conversion from beingness an e-grocer to an e-tailed is a substantial opportunity. The profit margins in groceries are low so expanding their product lines and their variety will help Waveband cover the humiliate margins, increase their consumer base, and expand their customers opportunities and loyalties. Threats Lack of continued support from investors will stringent that Waveband will not be able to keep the company running long enough to expand its customer base to the sizing that would be large enough to make a profit.If the brick-and-mortar chains, such as Kroger, developed and promoted a home delivery grocers service, competition would increase and it would be more difficult to attract customers. An existing brick-and- mortar store would already have established practices and brand recognition, which would be difficult to match at this early stage of Wavebands existence. Http//www. Slithered. Net/Electroweak/download-it-4077554