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To: jhg_in_kc who wrote (8043)5/12/2000 4:57:00 AM
From: Dale Baker  Respond to of 9068
 
If this is correct, Amazon would in theory possess excellent scalability once it has its one-click buy a book application designed and warehouses in place. It can scale upward to accommodate more and more customers essentially at no extra cost. Am I right?


Amazon is only scalable at the front-end (though the one-click system is terrific). All new business means more demands on the back end and order fulfillment. That's why they never make any money, coupled with the marketing costs.

And that's why software companies are better business models than retailers.