In mid-2006, Overstock.com faced a daunting set of business challenges. Founded in 1999 as an online "closeout" retailer, the $800 million firm had more than 15 million unique visitors a month, 10 million life-todate customers, and more than 500,000 energetic SKUs in approximately 20 product categories. However, while it had come within one half of a percentage, the company had yet to realize an annual profit. Furthermore, the enormous increase that had empowered the company to become on online shopping giant seemed to be slowing at an alarming speed. At least partially as a result of the challenges facing the core business, Worldstock? the socially responsible initiative of the firm? was also in jeopardy.
Overstock.com and Worldstock
Yet, working with third world artisans turned out to be significantly more expensive than originally expected. By mid-2006, Worldstock's "self sustaining" version for economic development was projected to give nearly $1 million to the firm's losses that year. Because of this, all those consecrated to the Worldstock model, from CEO Byrne to Office Manager Angela Ramirez, faced the thorny questions about the best way to balance these new financial imperatives with the philanthropic and societal objectives of the group. While no one required to openly recognize it, some stakeholders wonder if Worldstock spun off if the circumstances did not improve or might eventually be shut down.
PUBLICATION DATE: March 07, 2008 PRODUCT #: SI88-PDF-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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