Hello Huub:
Thanks for your input. The interesting think about Amazon.com, from my
research, is that it does not expect to turn a profit until 2001.
Apparently it is still losing money, but its stock is a good buy.
Unique situation.
Barry
---"H.W.G. Rulkens" <[EMAIL PROTECTED]> wrote:
>
> -----Original Message-----
> From: Carlos Bas <[EMAIL PROTECTED]>
> To: H.W.G. Rulkens <[EMAIL PROTECTED]>
> Date: donderdag 18 maart 1999 18:54
> Subject: Re: [IMAFDI-E] Posting: Subject Online Bookstores
>
>
> First, some minor adjustments
> In your dissertation, the successfactors may be based on a
decreasing timely
> internet niche, (meaning first to market, uneducated market, no
competitors,
> first to be digital), so be careful.
>
> >You asked me in your last message to be more concise about my
> >dissertation. In my dissertation I going to cover three points:
>
> >1.-What are the specific factors that explain the success of the
online
> >bookstores?
>
> >Books are a product that has been a big market for the Internet
users.
>
> Books contain information that is in a digital form reproductive.
Since
> books are about information (although no altering possible, and the
> information it contains is static), these came first in the digital
trade.
> Next were the cd roms, which contain bits of music. If matter can be
> digitized, then it will be narrow/broadcasted through the internet.
The
> sheer number of books and their usage stems from the past. Why
should it be
> different in cyberspace?
>
> >Books are easy to deliver by post.
>
> So are groceries, food, clothing and other goods.
>
> >There are only a few book distributors of books, so a online
bookstore
> >|can easily provide a wide range of products.
>
> Can you please elaborate on that? It is not clear for me, that a
online
> bookstore can provide a wide range of products with few suppliers in
one
> market. Are you referring to competitors?
>
> >Price is an important factor when choosing where to buy a book.
>
> True. Since books are in principle homogeneous products, with the same
> quality and information anywhere, it makes no difference where you
purchase
> them. Therefore is the price such a important factor, where
(location) to
> buy it. But a whole customer loyalty scheme can be built around it
to get
> you satisfied and buy again, at the same shop. That could make a
difference
> in a price war.
>
> >2.-Why has Amazon.com become the leader in the online bookstore
business?
> >Amazon has been a first entrant in this markets.
>
> Yep, but being a first entrant will not ensure immediate success.
But if one
> provided a true value for the customer (killer app)?
>
> >Amazon offers to its clients many services and personalised
treatment.
> >Etc.
>
> So is the rest, but what makes them different from the rest is their
ability
> to get efficient customer feedback and sell those as reviews.
> In fact, the customer is the content. (but that's another debate).
>
> |3.-Which should be the future strategy of Amazon.com?
>
> 'should'?
>
> There has been much discussion about it, (one can only guess the near
> future), but differentiation 'or is it diversification' would be a
possible
> step.
> Options are : a virtual storefront for legions of products (books,
records,
> medicine), get local affiliations (franchising locally, with local
content),
> stay in the bookmarket and try to own it.
>
> Anyway Lisa had a good tip, to get in contact with some Amazon
marketer.
> This shouldn't be so hard at all.
>
> Regards,
>
> Huub
>
> ps. should this article be in English?
> Ondertussen begint boekhandel Amazon met verkoop van medicijnen en
> schoonheidsproducten. Dit door een belang te nemen van 40% in
Drugstore.com,
> een bedrijf dat
> geneesmiddelen en schoonheidsproducten verkoopt via het Internet. De
aankoop
> betekent de
> derde diversificatie van Amazon. Eerder werd al gestart met de
verkoop van
> cd's en videofilms. Met de investering is naar schatting 30 a 40
miljoen
> dollar gemoeid. Amazon wordt de grootste aandeelhouder in het recent
> opgerichte Drugstore.com. Dit bedrijf (www.drugstore.com) wil alle
producten
> gaan
> leveren die te maken hebben met lichaamsverzorging, van tandpasta en
> kruidenmengsels tot geneesmiddelen. De Amerikaanse
geneesmiddelenmarkt heeft
> een omvang van
> zo'n 150 miljard dollar per jaar. Drugstore.com gaat niet alleen
huis- tuin-
> en keukenmiddeltjes verkopen, maar ook geneesmiddelen waarvoor een
> doktersrecept nodig is. Klanten moeten hun arts vragen telefonisch
of via de
> fax contact
> op te nemen met Drugstore.com en de bestelling goed te keuren. Voor
het
> overige opereert Drugstore.com op dezelfde manier als Amazon.com. De
16.000
> producten die worden verkocht zijn ondergebracht in een reeks
categorie�n,
> er is een
> zoekfunctie en de bezoeker krijgt tips voor andere diensten en
links. Ook
> zijn de producten van Drugstore.com, net als die van Amazon.com,
goedkoper
> dan die via de reguliere kanalen.
>
> pps.[admin: posting guidelines not clear]
>
>
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