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Technology Stocks : Egghead Computer (EGGS)
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To: bc_mack who wrote (7736)5/24/1999 4:12:00 PM
From: John Madarasz  Read Replies (1) of 8307
 
Very interesting point bc,

I'm also very interested in seeing how the competition fares as e-commerce evolves. As other companies(such as onsale) struggle to
meet customer demands and margins will their service suffer in order
to maintain those margins? Will customers move towards the more established companies who are able to provide the goods and services offered?

Recently I tried to make two separate purchases from Amazon for books;
both times they were out of stock; both times I went to Barnes and Noble and ordered the in stock items right away as well as setting up an account at B&N.

Internet commerce is very unforgiving in it's convenience and ease of use. All the fancy one click shopping and site navigation didn't mean a thing to me at Amazon because they did not have the product I wanted.

Perhaps as time goes by EGGS will continue to offer goods and services better than the "less well funded" business models out there. I will be very interested indeed to see where onsale is in the future with their "at cost" business model and now free shipping.

If and when other competitors begin to fall in the shadow of EGGS, an argument could be made that maybe Egghead.coms survivor status will garner interest and fuel the rise in the value of it's stock.

Again, If you don't absolutely believe in the Egghead/Orban business
model and it's ultimate survival this is a very bad place to be. This can't be a hope thing...Thank heavens for the experience and saavy of the old man George Orban. Personally I'm banking that he pulls it off.

Regards, John

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