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

AMZN 229.60

+1.5%

Nov 25 3:59 PM EST

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To: Gary Walker who wrote (23754)	10/29/1998 6:41:00 PM
From: Tom D	Read Replies (1) of 164684

re: Barriers to entry The barriers to entry are: 1) You must be ready to sell at a loss and lose $500M in the first few years if you want to compete with AMZN. 2) AMZN already has captured a lot of the easy customers when there was no competition. They have built loyalty through service to their customers. Before the cynics attack the loyalty issue, let them explain how AMZN kicked CDNW's butt in their first full quarter of selling music CD's. If there are no barriers to entry, maybe they can explain how BKS has managed to accomplish so little with their website after 15 months of trying. Round 1 in the etailing wars clearly goes to AMZN. There will be a round 2, involving Bertlesmann, and maybe Wal-Mart, and maybe MSFT? and maybe others. Meanwhile, AMZN gains more experience and more market share. Best Regards, Tom

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