eToys Post Mortem

from the what-happened? dept

Business Week takes a look at why eToys failed and what they probably could have done to survive. They suggest that eToys single-mindedness in being a pure play internet firm and taking on Toys ‘R’ Us (and not taking the deal to work with them that Amazon eventually did) may have hurt them. They also didn’t work to convert viewers into buyers. They built a huge brand name, and had lots of great TV commercials, but never offered any sort of promotion to get people to actually try the site out. I realized as I read this that I never once bought anything from eToys. Brand recognition is great, but if it doesn’t turn into revenue, how useful is it?

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