Alomex:
I'd check around, as 12-36 months aol was a notorious pain about letting people drop the service. Since you persist, I'll reply and if you can convince me, I'll keep them coming until one of us drops. Try this.
1. AOL's an isp, massive infrastructure investment requires. AMZN sells commodities to a (somewhat to largely) price sensitive consumer group (check the definition of commodity and kindly spare me the cr-pola about TMF "community.").
2. Hence, AMZN virtually 0000 barriers to entry, AOL lots.
3. Intensity of competition. Vicious. Multiple players on line in a fragmented industry for amzn. AOL in an oligopoly.
4. Threat of substitution. Large. On line e tailing may be replaced by portal-linked shop bots. Check out YHOO, Shopping, Music, they'll comparison shop for you at ~20 retailers. Acses.com, books.com, or the site I posted earlier this evening.
5. Leverage of consumers over retailers. Massive, instant comparison shopping.
6. Leverage of suppliers. Hmmmmm. You decide. AMZN had to give away a massive amount of shares to its 2 main suppliers. This was no little perq to insiders. This was survival. Long term, why wouldn't a portal-linked shop bot, simply sample the suppliers directly and buy from the cheapest?
If you're actually interested, some strategy books by Michael Porter are not a bad idea. And before you shoot off a pithy response, please take the team to knock down any of the above you disagree with, as I'd love to hear your thoughtful analysis.
LP |
