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Richard Wood started the internet company, Bookstore, because he felt What was Bookstore’s sales revenue at the end of 1997?
Richard Wood started the internet company, Bookstore, because he felt What was Bookstore’s sales revenue at the end of 1997?
admin
2010-01-24
62
问题
Richard Wood started the internet company, Bookstore, because he felt
What was Bookstore’s sales revenue at the end of 1997?
Woman: Good morning, Richard. Now, in 1994 you were a computer science graduate with a good job working for an investment company . . . and then you started Bookstore. Why?
Man: Well, I was thirty and settled at work, but then I came across a report predicting annual internet growth at 2,300%. The figure was like an alarm clock ringing in my head. I started to think about the regrets I might have at eighty. I realised I probably wouldn’t even remember the things that seemed important in my thirties (like getting my end-of-year pay bonus. But I’d definitely tell myself I’d been a fool to ignore the internet.
Woman: How did you go about choosing a product?
Man: Well, I drew up a list of twenty products, from clothes to gardening tools, and from that I got a shortlist of five, and then I assessed them. I thought about market growth in different countries and I also did some research into suppliers. But there were other important factors as well. I wanted a product that didn’t retail for too high a figure. I thought that since many people would be buying from the internet for the first time, they might be afraid to take a risk with large amounts of money.
Woman: And what made you decide on books?
Man: Well, basically, I found out that books had an eighty-two billion dollar market world-wide. There’s also a high demand for CDs - a product I nearly went for - but with books there’s a much wider choice. There’re 3 million items in the book category, but only 300,000 in CDs. This choice meant the capabilities of the computer - in organisation and selection - could be put to good use.
Woman: Bookstore has certainly been very successful. Why do you think that is?
Man: Well, it’s not been easy. For the first five years, it was a struggle raising funds and developing the right software. The ideas weren’t the difficult bit. If you and I sat down here for an hour, we’d come up with a hundred good ideas. The hard bit is making those ideas work. There are several key elements, which for me were research, recruiting the right staff, and prioritising.
Woman: And you’re satisfied with your customer growth?
Man: Well, it was a bit slow at first but then it picked up and from May ’97 we started to see our greatest growth. We went from a hundred and twenty million dollars annual sales revenue to two hundred and thirty million dollars by the end of that year, and from 340,000 customers to 15 million. 58% of them were repeat customers. By ’98, sales had reached almost three hundred and ten million dollars.
Woman: And is Bookstore’s success reflected in its profits?
Man: Well, at the moment we’re focusing on introducing ourselves to customers and we spend a lot on advertising. Anything else would be a poor management decision. But, of course, it’s reflected in our final figures. It’s not unusual for a four-year-old company like ours to be in an investment cycle. What is more unusual is for a young company like Bookstore to be sold on the stock market, which happened in July ’97.
Woman: Bookstore is well-known for its high- quality customer service. What is the secret of your success in this area?
Man: Well, firstly our books are delivered fast and any complaints are dealt with by email and what’s important is that the email is always answered in a friendly way, with the emphasis on ’the customer is always fight’. In fact, customers sometimes feel guilty about complaining because Bookstore staff are so helpful! Regular customers are recognised when they go to our website, and we suggest titles to them, based on their previous purchases.
Woman: Do you think Bookstore offers a better service than its competitors?
Man: Well, yes. We’d been in the market for about two years before most of our competitors started so we had a head start and although some have caught up now, we’re still cheaper. Our book price includes tax and delivery. Most of our competitors’ prices don’t. But what’s more important is that Bookstore has a talented, hard-working staff. As an incentive, everyone’s offered shares in the company and this helps to create a sense of ownership. We provide a better service because of that.
Woman: Thank you, Richard. It was very interesting to talk to you...
选项
A、$120 million
B、$230 million
C、$310 million
答案
B
解析
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