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Technology Stocks : Value America (VUSA) - Another eBay?

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To: Marty Rubin who wrote (664)	2/20/2000 10:22:00 PM
From: RockyBalboa	Read Replies (1) of 734

Maybe the times changed or it is very different in the U.S., - but in Europe the concentration amongst the retailers and distributors has been fuelled by cost advantages of big stores, but not limited to. Increasingly, the buying power of big resellers puts additional strain to smaller shops. What happens: In the consumer goods (which is perhaps not comparable to computer & electronics but as electronics gain characteristics of nondurables the difference fades) the market leader first dictates the price, or he will buy at an alternative supplier. Then "his" supplier gets "tied in" with a contract either disallowing or discouraging him to deliver to the competing retailers. Consumer organisations cry, unions want politicians to impose rules but nothing works. At the university I got to know that while studying "industrial organization". It is called "war of attrition". Ultimately it should bring the smaller players to surrender (either through acquisition or exit).

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