A Bimbo, Re-Defined

...a princess's diary...

mardi, avril 26, 2005

The dot come bubble (me like it!)

mm, Let me try to explain the dot com phenomenon here. with my very very limited knowledge of course, so all u dear readers, please contribute if you have any ideas/comments. I will love to hear them, as this is really a subject of my interest.

I wanted to explain in the tag board, but ...

I am too long winded! HAHA

(for those who did not read the previous post, you can refer to this, and drool at the eligible ones..=P haha)

anyway, lets separate the .com companies.

1. Google.com (with 2 millionaires)
2. eBay (with one millionaire)
3. Yahoo(with 2 billionaires)
4. Amazon (with one millionaire)

Lets start with the easiest to understand and comprehend.

Business: selling books online.
Why I love this company:

It offers convenience of ordering the books at the comfort of our homes, own time own target. which means, we could buy books as and when we like, this is especially useful for busy people, who usually read a lot. Being an online website of selling books, it is able to offer its service to whoever and whenever, of course provided that the person has internet access.

It has a wide range of products, people could count on it to find those hard to find books. Being without a shop front, Amazon does not have to be threatened by the limited shop space, so it is able to provide even those books that are not popular.

Low maintenance cost. Again, no having a shop front means that Amazon does not need to worry about expensive rental and electricity bills. Not to mention the manpower costs. THAT alone could amount to a huge sum of money per month, could you imagine the savings? Imagine a big chain of huge book shop that is accessible to the rest of the world at 24 hours a day, the actual amount to maintain such a big chain will be really huge. Not to forget the logistics needed to transport the books!

To put it simply:
Large group of target customers => High volume of sales with low maintenance costs, it is no wonder that he is almost a billionaire.

Oh, there are other perks too!

When you are searching for the book you want, Amazon helpfully offers you other similar books. and based on their market intelligence, it is highly likely for the customer to purchase another book, Plus a good customer loyalty program that keeps old customers coming back for more with sweet and thoughtful things like remembering your birthday, special offers, and list of new books that might be of your interest (the same market intelligence here). With a sophisticated rule-based algorithm, Amazon’s customer loyalty model is truly edge cutting for it to keep abreast from its competitors.

Ok, I realised that I have been too wordy with Amazon, so I will just go briefly to the following companies. And if you are interested, you can do your own research!

Business: online shopping, auction
Why I love this company:
Convenience of viewing items from throughout the world.
Charges a small amount for the sellers on the auction.
Acts as the role of the ‘middle man’ for the traders internationally.

Low manpower, of course, as it is fully automated and self running. Sellers do their job by placing their products up for sale, contacting the customer, and completing the whole transaction.

There is a ranking system in Ebay that makes the buyers feel safer to buy. Of course, the rating system helps a lot too! So the buyers can see that the seller is a honest seller, and feel secure with their purchase!

In general auction items are second hand items. BUT there are also a lot of sellers selling brand new items, straight from the manufacturers. So, you can get brand new items at up to 50% of their original price! (this is almost the same as the concept of DELL, which also happen to produce a young millionaire too!)

Business: Referral business
Why I love this company:
The search engine that google uses is incredible!

The money comes from advertising. And also, referral. Which means, when the user is searching for a particular service, the sponsored links will appear first in the search results. and because it is relevant to what the user wants, or is searching for, it is viewed less as an advertising. People are usually more receptive if they do not feel that they are looking at a sales pitch. The money comes in when the user actually clicks on the link of the sponsor, or makes a purchase (depending on the deal they strike with google, I guess), or even just of the referral.

Just do a simple search, and u will realise how big referral business is right now. Especially when you do a search, sometimes you will just encounter a page with some miscellaneous information and links. Yup, you have just reached a referral page! (they usually have easy-to-remember domain names)

Now, with the email thingy. Google is able to ‘recommend’ links that we might be interested in, by using rule based algorithm on our emails. (no wonder rule based research is heating up ) which feels like a more ‘personalised’ recommendation. Plus, its really accurate too!

Business: almost all of the above
Why I love this company:
This company provides almost everything provided above by other companies. online shops, auctions, search engine, emails...etc....even news!
That is the reason why it has 2 billionaires, no? ;)

Am getting too old and lazy to type liao. The thoughts in my mind move way too fast for my fingers. So there.

prays that my labby is ok