Lessons Learned from an Initial E-Commerce Failure by A Catalog Retailer

Dien D. Phan A professor in the Business Computer Information Systems Department, St. Cloud State University, MN, He holds an M.B.A. from the University of Minnesota and a Ph.D. from the University of Arizona.

Jim Q. Chen The Business Computer Information Systems Department, St. Cloud State University, He holds a B.S. degree from Xian University of Technology, China, an M.B.A. from Northern Illinois University, and a Ph.D. from University of Nebraska at Lincoln.

Sohel Ahmad The Management Department, St. Cloud State University, He holds a B.S.M.E. from Bangladesh Institute of Technology, a M.S.I.E. from the University of Alabama, and a Ph.D. from the University of Minnesota-Twin Cities.

Abstract

As companies rushed into E-commerce in the late 1990s, many predicted that existing catalog retailers would have a natural advantage over physical store retailers. However, confusing market signals and incorrect management assumptions led to some poor decisions. This article explores what went wrong with a successful catalog retailer, Fingerhut Inc., as it initially embraced E-commerce in the late 1990s, and some of the lessons learned.

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Lessons Learned from an Initial E-Commerce Failure by A Catalog Retailer

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