Abstract
‘It's only a web site. What could be so difficult about that?’ This quote is from the cafeteria of a start-up business funded by a North American retailer, after the disastrous ‘Black Friday’ of 2000, during which its web site experienced systemic failure. This case describes the dynamics, complexities and consequences of fast tracking an e-business start-up. This consumer electronics retailer created one of the most visited retail web sites, from concept to operation in 6 months. Market analysts were predicting a major increase in online sales while consumers were adopting the Internet at a rate faster than any previous technology. Meeting the multi-channel demands of the dynamic and competitive environment required operational balance, stability, innovative flexibility, organizational fit and the alignment of resource capabilities with technology. This case challenges the reader to comment on how a large company positioned itself and integrated the necessary competencies to compete successfully in a developing market by establishing a spin-off operation, separate from the main company.
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