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

AMZN 233.22

+1.8%

Nov 28 9:30 AM EST

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To: llamaphlegm who wrote (28421)	11/28/1998 11:00:00 PM
From: Tom D	Read Replies (3) of 164684

<< the internet only guys and their piddly 10% of the market)>> If there are only a few surviving internet etailers, each of them may have enough market share to have clout in obtaining low prices. I seem to recall that the book-selling market is highly fragmented. Does anybody know BKS market share? Books are about an $80B market, globally, and what are BKS sales--a few billion a year. Obviously our discussion is about more than books. Does anybody know Wal-Mart's market share? The land-based stores would be cannibalizing their own sales if they waged price wars with the net-only sellers. If land-based stores want to also sell on the net, it appears that a) they will lose significant money selling on-line due to competitive cost pressures b) they will undersell themselves--stealing sales from their land-based stores, which have probably realized no cost reductions to accompany the transfer of sales from their stores to the net and c) they will have to waste millions on advertising/promotional campaigns to prevent competitors from grabbing market share. I think this issue is not as clearly one-sided as your post implies. Respectfully, Tom

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