Compare and Contrast Webvan and Amazon

SIMILARITIES

Based on Amazon’s success, the large number of similarities between Webvan and Amazon suggests on the surface that Webvan could have remained a going concern. Webvan, like Amazon, created an online service that was convenient and beneficial to use. The company accomplished this by creating an online ordering system where customers could order items and have a personalized shopping experience (B2C model). Both companies focused on providing a vast selection and rapid fulfillment. Furthermore, they focused on detailed market segmentation and appropriate supplier offerings to fulfill each of these segments. Webvan had a rapid growth strategy that resembled Amazon’s approach. Both companies chose to rush to the initial public offering (IPO) stage in order to raise enough capital to continue funding their start-up operations. Also, Webvan and Amazon were highly leveraged with large amounts of debt used to establish business with as many customers as possible in a very s...