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Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (2515)	3/27/1999 8:34:00 PM
From: Sleeper	Read Replies (1) \| Respond to of 28311

A TRUE STORY: I bought my first business computer in the early 80's to help automate my operations. My mother, an accountant/bookkeeper for a medium size home building company, worked off manual ledgers. I of course showed her how it was possible to do this on a computer, but she was totally unwilling to change her modus operendi. She retired in 1990, still using a manual ledger. Fast forward 9 years. My mother is fully computer/internet capable thanks to classes at a local computer store and (of course) a Dell 266 Pentium desktop, purchased by me on line. When you ask her: why the change of heart? she responds, "things have changed. The internet is a necessity." My mother is 79 years old. I have learned several important lessons from this experience, some of which are: 1. Never assume anyone is incapable of change or alteration in their philosophy based upon age; 2. If you build a better mousetrap('net) people will beat a path to your door 3. The 'net is a commercial & informational necessity that transcends generations; 4. Given a choice, individuals will almost invariably select for the best & most efficient modality that meets their needs. Hope this doesn't sound too maudlin. I do not have a computer or 'net background, but as an investor I have identified these sectors as the ones with the greatest potential. After researching the area,I put my money where my beliefs were, and so far it's paid off. Regards Sleeper

To: Lizzie Tudor who wrote (2515)	3/27/1999 8:48:00 PM
From: Technologyguy	Read Replies (1) \| Respond to of 28311

I think you're right as far as existing competitors are concerned. It seems very difficult, both from a management and a logistical point of view, for an old-style company to make the transition. However, new companies, without all the baggage, can offer competition to companies such as Amazon, CD Now and others, that, in the long run will cut margins. I do admit, though, that having built brand early, as amazon has done, is a huge advantage.

To: Lizzie Tudor who wrote (2515)	3/27/1999 11:56:00 PM
From: HeatherN	Read Replies (2) \| Respond to of 28311

Michelle, I agree with your analysis of the larger-than-perceived obstacles to effective e-tailing and distribution. The model that Amazon is building is fascinating on this gigantic scale. Imagine a producer or vendor of small goods in a neighborhood that hands out samples to generate interest and familiarity. An anticipated and accepted loss in hopes of future commerce. Amazon offers a known product that may be considered a commodity. Technology guy has pointed out that as others develop these online purchasing and distribution methods that margins will fall, especially with wider spread use of shopping 'bots'. Amazon has taken the online P&D methods further however, and distinguished itself from the others. Onscreen greeting, suggestions based on past purchases and ease of ordering/payment make it seem almost "friendly." It is these facility with which one can order books, music and who knows what in the future that Amazon is banking on for future profits. Get the customers now, learn their preferences, create the online version of the "batteries and magazines at the checkout counter impulse buy" with their use of suggestions and links, and they will be able to increase sales and probably margins as well. Consumers like the assurance and familiarity of shopping where they know they have had reliable transactions before. Good service, a well-designed web site with easy navigation and consistent delivery would most likely be worth slightly higher prices. It is interesting to see this concept implemented with a new business, on a scale of billions of dollars. Personally, I have never owned Amazon but am a supporter of this type of technology (INKT, DRIV, etc). Your comments, analysis and previous posts are greatly appreciated. Heather