By that logic, if Hersheys is losing money, they should take their candy bars off the shelves and force people to buy online. Absurd.
It places too much confidence on the E-Commerce boom, which is not guaranteed. . . statistics have shown over the past 20 years, less than 30 percent of online users place orders online.
The reason E-Commerce is expected to grow so much, is not due to a higher percentage of shoppers, but to a higher number of users.
Big difference. But the majority of people will not suddenly shift to buying via the net. . .it is simply not important enough. . not enough benefits.
Remember, average Americans consistently watch TV shows like Rosanne and 3rd Rock. . .they love Jerry Springer and the National Enquirer. And the one thing that many Americans have to look forward to, is their weekly walk through Wal-Mart. . .or if they are really feeling good, then they take a trip to the Super Wal-Mart. . .
Now if you THINK that the average American is different than this, you are mistaken. And my point is that IBM executives are passing down such a decision, without caring how that affects their relationship with Best Buy, Office Max and others that have formed a partnership of sorts with IBM. And severing such ties is never good for business. If they cannot make money with their current retail model. . .find another. . .but don't throw the baby out with the bath water.
Do you know why Coca-Cola is so enormous? Because you can buy it absolutely everywhere you go.
Rande Is |
