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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 232.37

-0.9%

3:59 PM EST

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To: llamaphlegm who wrote (21082)	10/10/1998 1:30:00 PM
From: Glenn D. Rudolph	Read Replies (2) of 164684

Just think about a few questions: 1. Who had a bigger head start amzn or hayes? 2. Which industry has bigger barriers to entry and start up costs? 3. Which product is a higher margin product? 4. Which industry had bigger prospects for growth -- modem sales in the fledgling pc industry in 81 or amzn's sales of books, music, (toss in videos and software if you want) in 1998? LP, I am very familiar with the Hayes stories as is likely most people on the net. Hayes was the "standard." Every modem manufacturer would advertise Hayes compatible. Margins for Hayes were very large due to the R & D that others had not yet established. Margins began their decline as the modem business became a commodity type business.It too a lot of dollars for competitors to do their R & D to compete. Barriers to entry were high. People had no loyalty to Hayes although it was a well known name. Amodem that worked as well and cost less would do just fine. Amazon believes their name means something to the consumer. Hogwash. Glenn

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