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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 234.70

-1.2%

Nov 14 9:30 AM EST

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To: Sarmad Y. Hermiz who wrote (61138)	6/8/1999 11:40:00 AM
From: ShortyBear	Read Replies (1) of 164684

The opposite is brand identity dilution, because few customers will buy from a diluted brand. That's why specialty stores often do better than department stores -- they have a brand that means something to consumers. In the long run, consumers often assume that a specialist (e.g. the Gap for jeans) is better place to buy than a generalist (e.g. Sears for jeans). There are some counter examples, but this rule typically holds true. My point was that in the case of Amazon, the brand identity built up in online book sales may (eventually) be lost to B&N, Borders, etc. Meanwhile, the new businesses may spark a lot of short term interest, but inevitably fail to gain market share from more specialized competitors. In the end, if AMZN suffers from this, lackluster sales will result (perhaps bankruptcy also, if it the results are bad enough).

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