Success and failure of pure-play organizations: Webvan versus Peapod, a comparative analysis

Many businesses have failed in pure play markets, on-line grocery retailers or e-grocers among them. E-grocers face many problems which the traditional brick and mortar grocery stores do not. This paper compares a success and a failure in the e-grocery business. The subjects of this comparative case study are Webvan, an e-commerce failure, and Peapod an e-commerce success. This report investigates these four aspects of Webvan and Peapod: managerial decisions, logistical infrastructure, technological systems, and marketing strategies.