HomeGrocer.com: Anatomy of a Failure

12 Pages Posted: 27 Mar 2015

See all articles by Greg Fisher

Greg Fisher

Indiana University - Kelley School of Business - Management & Entrepreneurship

Suresh Kotha

Foster School of Business

Date Written: March 1, 2014

Abstract

This case study examines the initiation, financing, development, and failed merger of an ambitious online grocery retail venture: HomeGrocer.com. It highlights the risks and challenges associated with developing a revolutionary venture. Even though the HomeGrocer.com team did many things right developmentally, some key errors and unfortunate timing resulted in them expanding too quickly and running low on cash. It also forced them to make a tough strategic decision about whether to scale back operations and renege on their IPO commitments or merge with a well-funded competitor, Webvan. The case discusses lessons that can be learned from business failure.

Keywords: Business models, Entrepreneurship, Venture financing, Online grocery, Merger, Bankruptcy, Teaching case

Suggested Citation

Fisher, Greg and Kotha, Suresh, HomeGrocer.com: Anatomy of a Failure (March 1, 2014). Business Horizons, Vol. 57, No. 2, 2014. Available at SSRN: https://ssrn.com/abstract=2585183

Greg Fisher (Contact Author)

Indiana University - Kelley School of Business - Management & Entrepreneurship ( email )

Bloomington, IN 47405
United States

HOME PAGE: http://kelley.iu.edu/facultyglobal/directory/FacultyProfile.cfm?netID=fisherg

Suresh Kotha

Foster School of Business ( email )

University of Washington
Seattle, WA
United States
206-543-4466 (Phone)
206-683-9392 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
483
rank
56,472
Abstract Views
1,656
PlumX Metrics