CASE STUDY: CYBERIAN OUTPOST

Case study: Cyberian Outpost

Case study: Cyberian Outpost

Introduction

Cyberian Outpost was an online vendor of discount computer hardware and software, and was one of the first successful online retailers. CybOut was founded in 1994 by Darry Peck and announced its IPO in 1998 (NASDAQ: COOL). After its stock reached a high of $60 in 2000, Cyberian Outpost fell victim to the burst of the dot-com bubble and its stock price fell rapidly. The company's assets were acquired by Fry's Electronics in 2001. Fry's maintained its online store through the Outpost.com domain for a time, but as of June 2009 this no longer appears to be the case.

Case study: Cyberian Outpost Internet Marketng

According to the case Outpost.com's early trading efforts concentrated on partnerships with other Internet companies. In late 1997 the business presented its Outpost Affiliate program, under which allowed “affiliates who connection to Cyberian Outpost” could obtain “referral charges which comprise a percentage of the snare invoice worth of the purchase.” The business pledged fee inside “30 days of the close of each month.” The business furthermore suggested affiliates E-CAP (Electronic Commerce Affiliate Partners) trading discussion, which was conceived to help affiliates “fully maximize earning potential.” In 1998 the business subsequent amplified the come to of the program through partnerships with LinkShare Corporation and Host America, which hosted “small enterprise world broad web sites for 13,000 little enterprises in 45 countries.” Peck accepted that “an affiliate program is an productive way to boost our income, construct clientele commitment and appeal new customers who are looking for the best computer products.” He continued: “From individual vigilance, for example every week newsletters and exceptional boasts, to sophisticated expertise that makes it very easy to evolve and customize the buying know-how, our affiliate program is a mutually beneficial natural environment that we anticipate will augment through word-of-mouth and partnerships for example LinkShare and Host America.”11 Cyberian Outpost furthermore formed trading partnerships with diverse Internet portals.

In January 1998 the business come to a one-year affirmation with AOL under which Cyberian Outpost would be the “exclusive third party retailer of new computer hardware and peripheral gear in the Computing Superstore and other localities of the AOL Computing channel.” In come back, AOL would obtain $5 million and a percentage of Cyberian Outpost sales through the AOL Computing Channel. Peck accepted that the affirmation demonstrated “Cyberian Outpost's place as the premier online emblem ...