History of Zulily Zulily is an e-commerce company that started in 2009 to fill the gap of the growing need for online shopping stores. The company set up its website in 2010 and three years later, it had grown enough to become a public listed company. The founders Darrell Cavens and Mark Vadon targeted mothers who went shopping for their families (Zulily, 2014). Even though the strategy of Zulily is to attract women shoppers, it stocks a variety of items that includes toys, clothing, home decors, and a variety of gifts. The idea of Zulily was to provide a different online shopping experience for shoppers who targeted specific brands of products. Therefore, Zulily operates by providing a platform for buyers to order their favorite brand from …show more content… The stock value increased steadily for three months until it hit its all-time high of $72 per share. However, the share value went down gradually throughout the year 2014 to reach a low of %14 per share at the close of 2014 (WSJ, 2015). In the year 2015, the share value has achieved 52 weeks high of $42.43 and a 52 weeks low of $9.10. According to Zulily (2014), the volatility of the company's stocks does not have a link to the company's performance. Despite its steady growth, the share values have been fluctuating due to market forces in the stock market. However, with the announcement of the takeover of Zulily by Alibaba, the share value is expected to go up before the sentimental effect of the takeover subsides. This implies that investors in the company stocks may not reap directly from the growth of the company in terms of revenue. The financial performance of a company is crucial in determining investment and growth prospects. Individuals and corporate investors look at the company's financial report before making a decision on whether to buy or sell the company's stocks. Zulily's has been in the limelight for its good performance making it an ideal target for investors. According to Zulily CEO Darrell Cavens, the company grew fast in its first three years of operation because venture capitalist injected funds into the business that was used to fiancĂ© growth. Eventually, the company grew to the level of …show more content… Zulily has two operating stations, one in United States, and the other in United Kingdom. The US station targets customers in North America, particularly in United States, and Canada, On the other hand, the UK based station handles the entire European countries, but most sales are still concentrated in the United Kingdom. The company plans to open another station in Australia and Ireland soon. Apparently, Zulily is targeting customers in the developed countries. This class of customers has access to internet-enabled devices, and already they trust the e-commerce platform. In both United States and Western Europe, people have developed trust in buying items from online vendors. Online shopping sites such as Amazon and EBay have operated in the two regions for several years with impressive performance. It would be challenging for Zulily to target emerging markets where most consumers still go to physical stores to shop. Furthermore, operating in the developed countries gives the company ease of shopping goods to buyers because of the advanced transportation and communication Show More
