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Non-Tech : Borders Group (BGP)

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To: M CAHILL who wrote (66)	1/8/1999 6:34:00 PM
From: Sam Citron	Read Replies (3) of 411

MC, I don't know how you can denigrate the power of the online shopping model after viewing the success of Amazon, Dell and many others. What is helping Borders is their belated recognition of this serious competition and their determination to compete in this arena. Online commerce does threaten bricks-and-mortar commerce mainly because of savings on overhead and inventory, although it will never totally replace it. But there are benefits to having both. For example, book buyers benefit from being able to return books purchased online from Borders.com easily to a Borders store, if they so desire. While Amazon.com may be way overpriced at this point in time, the price discovery mechanism of the market suggests that they are on to something big. Borders ought to be able to protect its turf and even flourish if it can assimilate some of the lessons Amazon is teaching them. SC

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