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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Paddler who wrote (4154)	5/10/1998 4:10:00 PM
From: Doug Fir	Read Replies (1) \| Respond to of 164684

Again, kudos to Glenn for a great post. Paddler, I have a different take on point #3, if you will allow me; < 3. There is no loyalty from the retail customer. Price and service will win every time hands down and both are easy with which to compete.> I think, that while very valuable, "Brand" is not invulnerable and it's leverage can vary significantly across industries. "Nike" is having a rough time now, and we could see the day when this brand becomes passe. The young kids that made it what it is today are now adults and looking for individual expression, and the next generation is looking for something to call their own. Remember Adidas? That was the cool shoe when I was growing up. Then, they weren't cool. Poof! McDonald's was the great growth story of the 60's and 70's, but not anymore. Granted, they have great brand recognition, but having a restaurant on every corner doesn't hurt. Chicken and egg: Does the brand drive 10,000 store's sales, or do 10,000 stores drive the brand? Coca-Cola is everyone's favorite example of brand strength. Yet, is this pure brand strength or distribution? Imagine you ask for a cola at Micky D's. They ask, "Would you like a "Coke" for $1.20, a "Pepsi" for $1.15, an "R.C" for $.89, or a "Big M" cola for $.59?" Gee, I wonder why I don't get that choice? And how much Does Coke spend on advertising every year? Hundreds of millions. Why don't they just cut advertising and send it all to the bottom line? Because that would hurt the brand. That begs the question:How much of the brand is "Coke" and how much of it is billions in advertising? And, so, we come full circle. AMZN does not have exclusivity in product, distribution, price or presence. They don't have the "buck-age" to advertise a brand "image". So, where is the brand? Doug :)

To: Paddler who wrote (4154)	5/10/1998 4:20:00 PM
From: Glenn D. Rudolph	Read Replies (3) \| Respond to of 164684

3. There is no loyalty from the retail customer. Price and service will win every time time hands down and both are easy with which to compete. Brand is everything and without it your nothing. AMZN knows that and that's why I feel they have a very sound plan for the "long term". Look how successful McDonalds (sell junk food, fair service and price the same as the competition) and Coca Cola (just sugar water) are. Paddler, I am happy some one disagrees. I do not agree with yopur comparisons on brand loyalty. Many people feel MacDonalds burgers and fries are better than those of Burger King. They are not the same burger and fries in their minds. Some people feel coke taste better than Pepsie. The above are not commodities because the marketing of these companies made the consumer distinguish a difference real or not. However, a book of the same title is a book of the same title. No difference if one buys it from Amazon, BGS or BKS. When it comes to a commodity, the consumer is never loyal. From a marketing perspective, they're right on target. Is it really AMZN's fault they do such a good job at marketing that it's driven the stock way higher than it's worth. They were just the Johnny come early. Give BKS and BGP time. Glenn