Question

Webvan and Tesco were both in the online grocery business. Webvan failed largely because

Select one:

a. It was not solving a real problem for a large-enough customer segment

b. It targeted an attractive market but unattractive industry while adding fixed costs to a low-margin business model

c. The team was unable to execute on critical success factors

d. Defending its intellectual property rights proved too daunting and expensive

At the team domain level, connectedness up, down, and across the value chain is an important factor. Which one is NOT part of the "connectedness test" from the textbook?

Select one:

a. How well you know your suppliers, potential suppliers, and suppliers to industries that offer substitute products

b. How well your mission, aspirations, and propensity for risk are aligned

c. How well you know your customers and potential customers

d. How well you know your competitors and also providers of substitute products

Answer 1

Webvan and Tesco were both in the online grocery business. Webvan failed largely because

b. It targeted an attractive market but unattractive industry while adding fixed costs to a low-margin business model

The company failed to take into account how the fixed costs will bring the changes in the prices in an industry which was already a low-margin industry.

At the team domain level, connectedness up, down, and across the value chain is an important factor. Which one is NOT part of the "connectedness test" from the textbook?

b. How well your mission, aspirations, and propensity for risk are aligned

While all others are a part of connectedness test, analyzing mission, aspirations, and propensity for risk is not a part of it.