The example of an internet retailer such as Bikes.com is a good example of the type of firm that must pay close attention to executional cost drivers. The reason is that its success depends on customer service – prompt response to customer requests, and prompt and accurate filling of customer orders. Customer loyalty is a key success factor for a firm such as this, and loyalty comes from superior customer service in all its dimensions. Amazon.com introduced the successful internet retailing business model, and has built a successful business on the basis of customer loyalty. This is the approach Bikes.com needs to follow – and this means execution, execution, execution. The fall off in sales growth could be an indication of problems in
