Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Sarmad Y. Hermiz who wrote (60128)	6/3/1999 9:11:00 AM
From: Tim Luke	Read Replies (1) \| Respond to of 164684

amzn...getting into the online toy business per cnbc

To: Sarmad Y. Hermiz who wrote (60128)	6/3/1999 9:29:00 AM
From: Glenn D. Rudolph	Respond to of 164684

One of the constant detractions for amzn (and other net companies) is the "no barriers to entry" argument. However, if Amazon is spending $140 million on warehouses, and a similar amount in advertising and customer acquisition, doesn't this qualify as a high barrier to entry ? I can't sit here with my little computer and garage and compete at the same scale. Just a thought. Sarmad, I was never one to make the argument about low barriers to entry. I have stated there are various firms with adequate capital to compete. BGP and BKS come to mind in books. Go to bol.com You will what I mean in Europe. Also, I contend that there is not enough gross margin in commodity products to sell for less than bick and mortar stores. The price must be higher for the covenience. My brick and mortar retail business has high barriers to entry due to capital requirements. However,there is a lot of competition. Retail begets competition. It always has. Glenn