Boo.com—The path to failure

Boo.com was conceptualized by Ernst Malmsten as a Web site that would be ultra hip, technically awesome, global, multilingual and one which provided street ware to the affluent young. By December 1998, most European and Middle eastern investors had agreed to invest in Boo.com. Having set up offices and gained the support of JP Morgan, over the next few months Boo.com focused on two main areas - technology and gaining capital. Positive press started to build up around the new business but internally Boo.com was still struggling to resolve its technology integration. In October 1999, Boo.com missed its third launch date. The extensive use of technology had many drawbacks to Boo.com's customers. Less than 25% of those who tried to access the Web site succeeded. The site was immediately inudated with user complaints. Boo.com's apparel remained no cheaper than in the shops leading consumers to question the point of an Internet e-tailer that could not offer cheaper prices than brick-and-mortar stores.