PROBLEM                     SOLUTION                LESSON

By outsourcing some    Opened two additional   To provide the best
order fulfillment      warehouses, staffed     service to your
last year, eToys       entirely by eToys       customers, keep the
lost control over      employees.              work in-house.
shipping, and toys
arrived late.

Severe seasonal peaks  Expanded into baby      Diversify while staying
and drops in revenue.  supplies, party goods,  true to your target
                       and hobbies.            market.

Serious doubts on      Held first-ever ana-    Communicate with the
Wall Street that the   lysts' conference,      people who hold the
company can turn a     committed to            purse strings, even
profit and survive.    profitability by a      when the news isn't
                       specific target date.   rosy.