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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?


To: Doug Fowler who wrote (18119)1/14/1999 4:02:00 AM
From: Thomas Haegin  Read Replies (1) | Respond to of 27307
 
Quite agree, but please consider: YHOO and KO business models not quite comparable: KO needs real assets like factories, buys commodities like sugar, etc., etc. to produce their priduct. Then they need distributors, sales channels, etc.

YHOO ultimate raison d'etre is to provide a background "pinboard" for other cos. to advertise/sell their goods/services. They need very little in order to set up shop in China, for example, except for translators that produce Chinese webpages. After that, it is the internet user who decides whether YHOO comes to China or not, not the company.

The active part YHOO has to undertake vs. a KO to enter a new market is much smaller and less expensive and complex. Additionally, to access YHOO products, you only need dummy "standard" (almost) products like a PC. If there is no KO distributor in Yemen, all advertising in the world will not benefit KO sales in this country, but if a Yemenite buys himself a PC, a modem and plugs into a telephone line, YHOO has gained 2 new eyeballs without doing anything themselves... That's a huge advantage vs. a traditional co. like KO for example.

:-)