Egghead Computer (EGGS) Message Board

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Technology Stocks : Egghead Computer (EGGS)

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To: Anaxagoras who wrote (4075)	11/29/1998 12:59:00 PM
From: shane hartman	of 8307

>there are no barriers to entry, and but for a momentary lead, soon >everyone will be doing it. I disagree. The barriers are significant 1) Infrastructure. The ability to handle and fulfill orders from millions of customers is a significant undertaking which requires heavy capital spending (ask KTEL). EGGS has already done that. 2) Marketing. You can't just throw up a web site and expect millions of eyeballs. You have to develop a brand with repeat customers. EGGS clearly has developed the eyeballs. Now they need to work on converting those to sales, as you say. The new web site makes buying a lot easier. 3) Vendor Relationship. One of these days, the name of the game will be price, almost exclusively. Volume discounts will be required. EGGS has the volume discounts.

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