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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 220.66+1.6%Nov 21 9:30 AM EST
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To: GST who wrote (122118)3/30/2001 2:08:12 AM
From: Glenn D. Rudolph  Read Replies (2) of 164684
 
"Amazon cannot support all those DCs" Did they have an alternative? I think they should have stayed out of running their own DC's -- but then I think they would still be faced with the same issue -- a failed business model and a crippled financial disadvantage due to the excessive cost of being the "first mover".



GST,

I don't totally agree. Amazon initially had a DC in Seattle and one in Delware. The first mover realy is ireelevant in my opinion. There was never a rush to be the first nor the largest. The execution would have been in making their current distribution channel and product lines as efficient as possible. That was my understanding of the model from the beginning. Amazon never needed to be a purveyor of almost everything nor did they have to be the first to open a site in a foreign market. Focus was lost. Focusing on the core business would have been fine. There was never a reason for the high marketing costs and very expensive incentives to Amazon to get new customers. Word of mouth would have done that for them. One of the real benefits or real advantages of the net is communication and people share their opinions about on-line stores quite quickle on-line. The off-line workd is not as quick at doing that.

I do not advertise my site but it amazes me the growth in itjust from word of mounth andt sticking with what we know. We are far from a first mover.

Please take a look at this chart:

v2.superstats.com
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