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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 226.76+2.5%Dec 18 3:59 PM EST

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To: Mark Fowler who wrote (106348)7/23/2000 11:20:02 AM
From: Glenn D. Rudolph  Read Replies (1) of 164684
 
Mark,

I indirectly have been saying this since I have been on this thread. I was not as clear making the point as this writer. Everyone should read these two paragraphs and understand them well if they want to understand how B2C will play out and want to locate the long term winners. Good article by the way. Thank you.

"Hagel said that to succeed in business-to-consumer e-commerce, companies have to find ways to develop
sustained relationships with customers and generate value from those relationships. "Unless
you are going to do something that is economically valuable with those customers, more
traffic is an expense," Hagel said. "Many companies that won the fight for traffic are poorly
positioned to win the fight for profits."

The key to unlocking traffic, Hagel said, lies in using customer relationships and profiles to
generate value. This interactive focus has changed the notion of branding from the
vendor-centric brands of physical markets to the customer-centric brands of electronic markets. The old brands
said, "You can trust a product that comes from these brands." The new brand promise is, "You can trust me to
bring together the right resources to meet your individual needs." The opportunity in these customer-centric brands
is that, in contrast to the conventional brands owned by manufacturers, the new brands tend to favor
intermediaries. "
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