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

To: Lizzie Tudor who wrote (38708)	2/8/1999 2:06:00 AM
From: GST	Respond to of 164685

Michelle--the original model for JIT was the American grocery store -- where logistics does matter and margins are low. IN the last fifty years the model has evolved to the point where JIT and build to order are one and the same in value-added businesses. If you don't mind 2% margins, and if nobody can do it any better -- then all you say is true. Unfortunately, neither of these pertain to AMZN where low margins are not going to be enough to justify all the fuss and effort. DELL has way, way better margins than that - and almost everybody knows why -- because they build to order. Logistics? Sure, that is part of it. But without build to order you have exactly what you described -- a good model for a low margin business like selling cornflakes at Safeway. Even worse news -- there is a better model -- which means you would have an AMZN with either a poor future or no future at all.