Amazon.com, Inc. (AMZN) Message Board

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

AMZN 232.37

-0.9%

Dec 3 3:59 PM EST

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To: Bearded One who wrote (56190)	5/9/1999 11:45:00 PM
From: Lizzie Tudor	Read Replies (1) of 164684

Bearded, yes I know what you are saying for sure, and mostly agree (btw we talk about a lot of stocks here not just amzn), however this is where I disagree with you: Dell actually creates things out of raw materials. Amazon is nothing more than a middleman. OK, this is my opinion only. The Dell business model actually leverages R&D by Intel and Msft. Dell is merely an advertising and distribution machine. Putting together a PC is a 2 minute task... it is not true "manufacturing" - it is really assembly if I had to characterize it. The whole aim is to do as little assembly as possible too, where intc puts more and more stuff on their chip vs 3rd party parts (2nd level cache is an example). Dell's aim is to do as little design/engr as possible. Their value proposition lies in the supply chain which is centered on purchasing I would say at Dell, whereas if I had to guess amzn is transportation centered. In this sense internet retailing companies share similarities, they build up distribution infrastructure which is costly, spend a whole bunch on advertising and try to sell their product for cheaper than the competition. The key is volume.

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