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


To: Rob S. who wrote (13610)8/15/1998 3:24:00 PM
From: JimNewby  Respond to of 164684
 
Rob,

Many have stated that barriers to entry and economies of scale are AMZN's trump cards. As your post proves (IMO), barriers to entry are weak. Also, I am not convinced that economies of scale play a part either. Are they manufacturing these books in millions of copies and buying raw paper materials in such large quantities that they can get cheaper resources? NOT How about customer loyalty? Buying a book is not like buying TIDE laundry detergent or owning a CHEVY. The author of the book or even the publisher has customer loyalty, not the book store. It is good solid posts like yours that keep dispelling all the AMZN myths. Keep up the good work; it makes me think.

In AMZN's favor, they were the biggest splash to enter e-commerce (excluding porn). I think this will be their claim-to-fame. Many $$$ will be made in e-commerce in the years to come and AMZN does not or will not "corner the market." (As much as they would like to believe) IMHO

Jim Newby 