Rande, re: EHersheys...
Rande,
First, let me say it is always a pleasure talking to you because you don't hype or diss and you always have interesting and thoughtful points to your arguments... we can agree and disagree and we don't get all bent out of shape.
In my experience this is an exception on these type of chat boards, and I appreciate it.
Now, your Hersheys comparison is not valid because of the transaction cost. No? Things that cost from $500 up are now ordered over the web because it is cheaper for the seller.
You are correct, since the economy is growing more transactions (people) are ocuring, but I would think the online space is growing more because of it's convenience and cost reduction. Some retail models will not shift to the web, but a lot have and more will continue. I also don't understand why you say the benefits aren't there, since retal e-commerce is growing at an exponential clip compared to brick and mortar/catalog models. If there were not enough benefits, sales would be going down, not up... no?
Wal-Mart is another weak comparison to IBM on their distributor shelves. But, even Wal-Mart has (will?) opened up a website, validating the validity of the e-model. And Wal-Mart makes a ton of money in brick and mortar... brick and mortar, face-to-face community is their backbone... not IBM's.
I don't think IBM has severed their relationship with their distributors... yeah, it may have changed. These distributors can still use the pull of their brand and customer base to sell IBM computers over their websites. No?
Just my opinion.
Jon :) |
