Re: Barrier to entry.

From: Whiteside, John <John.Whiteside_at_CWUSA.COM>
Date: Tue 28 Mar 2000 12:42:42 -0500

ROB FRANKEL WROTE:
> Technology is no big deal. It may be convenient, but
> it's hardly the stuff that's gets people to stand up
> and swear allegiance. Besides, name one web technology
> that was supposed to be invincible and hasn't been
> surpassed since the claim was made.

Can't agree with you there. Frankly, I don't think
anyone has actually beaten Amazon at the web shopping
technology game.

I know that I personally don't bother to compare prices
on bn.com, CDNow, or anyone else who sells the stuff
Amazon sells because Amazon has managed to make finding
and ordering so much easier than anyone else that it's
not worth the hassle to save a buck or two.

I go to Amazon, I find what I want, I go through a
simple and intuitive check-out process, they know my
credit card number and shipping addresses, and I'm done
in a flash. I've had really awful experiences with both
of the other sites I mentioned above and they've lost
me forever, plain and simple.


Generally, anything Amazon sells I won't bother to try
to buy anywhere else -- and a number of people have
told me they feel the same way.

To use an offline example: there are stores where it's
easy to browse and find things, the physical layout is
comfortable, and the clerks are helpful. (Really, they
do exist!) People go back because shopping is pleasant.
Try to build loyalty if everything's too crowded, the
temperature is uncomfortable, you can't find anything,
and the employees are surly. (As in, every Macy's in
the DC area!!)

ROB CONTINUES:
> Doesn't that strike you as weird? If Amazon WERE a
> great brand, it SHOULD be Amazon Drugs!"

Branding 101: brands don't transfer across all
categories. Which is why you don't see Ivory motor oil
or Pennzoil dishwasher detergent. Amazon's extensions
into music and video were naturals (before them,
Borders and many others were doing the same thing in
their physical stores.) Electronics and auctions are
tougher, and a drugstore? That's a tougher sell yet. So
this really doesn't say anything about Amazon's brand
strength.

John Whiteside
john.whiteside_at_cwusa.com
www.cwusa.com




Received on Tue Mar 28 2000 - 11:42:42 CST