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Rob Rochester

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Traditional retailers

Relied on brand recognition as there most

powerful competitive advantage.

y One of the largest areas of investment in

traditional companies.

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The online customer

Shoppers expect to save between 20%-30% from standard retail prices whenshopping online.

Online retailing offers abundantinformation, reduced transaction costsand unlimited shelf-space.

Customers expect an around-the-clock

fire sale.

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Amazon

CEO Jeff Bezos - Customer, customer,

customer. I think everything falls out of

that. Its especially true online, because

the balance of power shifts away from

the company and towards the

customer.

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Amazon.com

Internets most powerful merchant

Positioned itself as a convenience brand.

Multiple meanings to multiple customers.

Customer Obsession. Personalization.

Aggressive Marketing and Growth Strategy.

Auctions.

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Barnes & Nobel

Strong physical presence made them

hesitate to invest fully in the market.

y Fear that a failure in the online world would

jeopardize there brick-and-mortar company.

All ready had a strong brand.

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Barnesandnobel.com

Launched Barnesandnobel.comy 1997

y 2 years afterAmazon.com

Did very little to tie Barnes & Nobel toBarnesandnobel.comy Conflicting return policies

y Differing prices

4th largest e-commerce site June 1999.

Brand Recognition.

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Barnesandnobel.com

Threat

y Niche Market.

y Borders.com Internet Kiosks.

Able to sell at low prices because we do

not incur high costs.

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Buy.com

Grabbed attention by guaranteeing the webslowest price on everything its family of websitessold.

Funded by Softbank and 100 internet companies.

Guaranteeing- beat prices of top 3 competitors atleast by 10%.

Make money by advertising and from sellingservices.

Optometry Economics.

Broke a 15 year-old first year sales recordy 120 million in revenue in 1998

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Weakness

Declining advertising prices.

Unattractive demographics.

Degree of consumer price sensitivity. Brand Loyalty.

Poor distribution.

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Accompany.com

Buy Cycle.

Selling products for e-tailers.

Problem Lots of suppliers.

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Priceline.com

Aims at customers who are Brand Flexible.

3 Distinct Services -y Travel

yPersonal finance

y Automotive services

First mover advantage.

In 1999 they announced to offerinternational and domestic long distance

service in 2000. Reverse Auction.

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mySimon.com

Comparison shopping site.y Empowers consumers to find the best prices for

any product on the web.

2000 CNET acquired mySimon. Choose to keep mySimon.com a

segregated brand from CNET.

Acquisition gave CNET a fast way to

integrate content.y Product reviews.

y Consumer feedback.

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mySimon.com

we want to integrate rich media with

comparison shopping to create more

shareholder value.

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Talus Solutions

Integrated pricing and revenue

management.

Airline Industry.

PRM Applications.

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Conclusion

Companies will struggle to keep a steadyrevenue stream and ahead of theircompetition until the online markets slowdown and people have time to adapt.

Many companies are selling products forunder cost and validating this withbranding.

At this point its hard to tell which strategy

will be the best for creating a powerfulbrand online.

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