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To: Glenn D. Rudolph who wrote (38550)	2/7/1999 1:05:00 PM
From: GST	Read Replies (1) \| Respond to of 164684

Glenn -the model that will win out over the next few years closely resembles the newspaper business. I no longer bother having a newspaper delivered, but if I wanted WSJ for example, how would it get delivered from NY to Honolulu each day? It would be printed in Honolulu under licence -- which is how it is done. I admire all your analysis, but you must go back a step further and look at the production process. Books can be, are, and increasingly will be, printed as near to the point of sale in time and space as is possible. Michelle seems to think there is a better alternative, or that having stores will burden BN, but BN will simply have more options and the scale needed for a national production and distribution system. Being vertically integrated is necessary because distribution and production are becoming inseparable in this business.