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

To: David Lee who wrote (27756)	11/22/1998 11:41:00 PM
From: jach	Respond to of 164684

When it is 10% higher than competitors definitely can be a key failure point Message 6525169

To: David Lee who wrote (27756)	11/22/1998 11:49:00 PM
From: Victor Lazlo	Respond to of 164684

<<I would completely disagree with your statement that Amazon's internet business model is a failure. >> Which model David? I think they are now trying their 3rd model. <<On the contrary it is the model to which many companies are trying to emulate for electronic commerce. Much like all computer companies are trying to emulate the DELL (virtually zero-inventory) model...Who wouldn't love to establish the amount of revenue that AMZN has without a single dime spent on brick-and-morter? AMZN is the zero-marginal-cost dream that internet commerce promises.>> David, amzn is going in the opposite direction of what you state above. They have estblised regional warehouses / shipping centers and take possession of and responsibility for inventory, and are hiring more staff all the time to staff the warehouses. They are building new inventories, not doing what Dell does. Dell assembles the machnes too, adding their own link in the value chain. Much different from the simple mail order catalog operation that is amzn. Victor

To: David Lee who wrote (27756)	11/23/1998 3:34:00 AM
From: JBL	Read Replies (2) \| Respond to of 164684

<I would completely disagree with your statement that Amazon's internet business model is a failure. On the contrary it is the model to which many companies are trying to emulate for electronic commerce> Precisely. They are being emulated at the speed of light by a gazillion niche players and wholesale distributors alike...and will never earn a dime in any of the new categories they move into, as they have completely lost their focus and are faced with mounting expenses and reduced margins.

To: David Lee who wrote (27756)	11/23/1998 10:08:00 AM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

I would completely disagree with your statement that Amazon's internet business model is a failure. On the contrary it is the model to which many companies are trying to emulate for electronic commerce. Much like all computer companies are trying to emulate the DELL (virtually zero-inventory) model... David, Please explain to me why AMZN has decided to increase their inventory and why fulfillment costs exceeds gross margins? Let's not even address marketing and administrative cost. Fulfillment costs are variable. Economy of scale does not work there. Please explain the way out of this problem. Thank you. Glenn

To: David Lee who wrote (27756)	12/9/1998 9:57:00 AM
From: craig crawford	Read Replies (4) \| Respond to of 164684

>> In any case -- Though I'm am weary of this hyper-run up of AMZN of late, I have faith that AMZN is very much going to be the DELL of the next 5 years. << Did DELL lose a couple hundred million dollars over several years before making money? And still command a $12 billion market cap? Don't think so...