e-Commerce the Next 100 Months...... Message Board

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Strategies & Market Trends : e-Commerce the Next 100 Months......

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To: jjs_ynot who wrote (1573)	10/1/1998 8:16:00 PM
From: TLindt	Read Replies (4) of 2882

There is one thing you have to focus on during a paradigm shift...and that is that the way things were, will not be the way things were before the shift. You have to have pain before you have the gain. ...ie established brick & mortar ways of doing things have to suffer first..before new internet based ways of doing business are widely adopted by brick & mortar companies. Like GM, Ford & Chrysler here in Michigan during the 70's early 80's...they use to build for shit cars based on what the traffic could bear. Those cars would either rust out or break down in a very few short years...then came the Japs with cars which seemed to last forever with out repairs...Detroit responded and the cost of an Automobile soared to give the consumer the maintenance free last forever car he seamed to want...or did in fact want. That was a quality shift from disposable cars to good cars. Back to the topic...when does the shift occur? When the prior ways of doing business...are squeezed by either competition, aka the Japs vs Detroit, or economic conditions? Economic conditions...haven't hit that. When do the ways of doing business change on economic conditions? Pretty simple actually, when you can't do business as before and make a profit in doing so the same old way.. When sales are down...during a down turn, you can't cut the variable costs of doing business, unit costs...you can only look at the fixed costs of doing business for improvement. Like getting a computer, and trimming staff...aka the 80's. OR 90's 00's...get rid of brick & mortar distribution centers, associated costs and e-do as much as you can. Like a NetB@nk or Egghead, they have competitive advantages which brick & mortar can not compete with in any shape or form. ie...they traded a couple thousand distribution points for goods and services to one...the internet, they can reach all of us connected here in the cyber-net..vs..building something everywhere in the physical to have the same reach. Goes back to the fixed cost of doing business, doesn't it? It's coming, in fact any down turn will accelerate it.

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