Overstock.com and Worldstock Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

In mid-2006, Overstock.com faced with a complex business problems. Founded in 1999 as an online "selling" retail, $ 800 million company has been more than 15 million unique monthly visitors, 10 million customers a modern life, and more than 500,000 titles active in about 20 product categories. However, while he came within one half of one percent, the company still do not understand, the annual profit. In addition, the tremendous growth which has allowed the company to become the online shopping giant is apparently slowing down at an alarming rate. At least partly as a result of the problems facing the core business, Worldstock Social Responsibility initiative was in danger. By CEO Patrick Byrne in 2001, the division used the infrastructure of the company in the market crafts made by third world artisans in line with U.S. retail market through a special portal site Overstock.com. However, working with the Third World artisans was much more expensive than originally thought. By mid-2006, Worldstock in "self-sustaining" model of economic growth is projected to contribute nearly $ 1 million in losses to the company this year. While most managers were careful to criticize the general director "pet project," some felt the company had to apply (what they saw) the negative impact that has on Worldstock financial performance in Overstock. As a result, all those committed to Worldstock model, from the CEO to Byrne Head Angel Ramirez, faced with pressing issues of how to balance these new financial imperatives with charitable and social objectives of the group. At the time, no one wanted to admit it openly, some have wondered if Worldstock can eventually be closed or isolated, if the situation does not improve. "Hide
by James A. Phills, Lyn Denend Source: Stanford Graduate School of Business 45 pages. Publication Date: Mar 07, 2008. Prod. #: SI88-PDF-ENG