Comments for International BS Blog http://internationalbs.wordpress.com BS = Business & Strategy Thu, 03 Dec 2009 23:20:24 +0000 http://wordpress.com/ hourly 1 Comment on More on forward integration into online retailing by Tom Osegowitsch http://internationalbs.wordpress.com/2009/12/03/more-on-forward-integration-into-online-retailing/#comment-459 Tom Osegowitsch Thu, 03 Dec 2009 23:20:24 +0000 http://internationalbs.wordpress.com/?p=1670#comment-459 Clearly, margins are juicy enough to push a number of companies into online retailing. THere may also be other secondary reasons (learning benefits?) but the coincidence with the economic downturn would suggest this is primarily about securing revenues/profits in the current difficult climate. Obviously these companies are confident (or at least hoping and pryaing) that they can contain channel conflicts. What was interesting to see was that Billabong opted for a non-exclusive online platform. (I am presuming that the luxury companies featured in this blogspot are opting for their own, exclusive online sales site). Unless Billabong are planning to exclude other brands after the acquisition (unlikely), why would they opt for such an arrangement? THere is the distinct possibility of other brands balking at appearing on the same site as a competitor who controls the site. What is the big upside for Billabong? Aggregation -- as in the case of an brick and mortar surfshop that aggregates many labels -- would seem a weak argument. I can , after all, fairly instantly jump from one website to the next to compare offerings, prices etc. Clearly, margins are juicy enough to push a number of companies into online retailing. THere may also be other secondary reasons (learning benefits?) but the coincidence with the economic downturn would suggest this is primarily about securing revenues/profits in the current difficult climate. Obviously these companies are confident (or at least hoping and pryaing) that they can contain channel conflicts.
What was interesting to see was that Billabong opted for a non-exclusive online platform. (I am presuming that the luxury companies featured in this blogspot are opting for their own, exclusive online sales site). Unless Billabong are planning to exclude other brands after the acquisition (unlikely), why would they opt for such an arrangement? THere is the distinct possibility of other brands balking at appearing on the same site as a competitor who controls the site. What is the big upside for Billabong? Aggregation — as in the case of an brick and mortar surfshop that aggregates many labels — would seem a weak argument. I can , after all, fairly instantly jump from one website to the next to compare offerings, prices etc.

]]> Comment on Why don’t more producers sell on-line? by More on forward integration into online retailing « International BS Blog http://internationalbs.wordpress.com/2009/12/02/why-dont-more-producers-sell-on-line/#comment-456 More on forward integration into online retailing « International BS Blog Thu, 03 Dec 2009 03:38:01 +0000 http://internationalbs.wordpress.com/?p=1657#comment-456 [...] International BS Blog BS = Business & Strategy « Why don’t more producers sell on-line? [...] [...] International BS Blog BS = Business & Strategy « Why don’t more producers sell on-line? [...]

]]> Comment on Why don’t more producers sell on-line? by Steve Sammartino http://internationalbs.wordpress.com/2009/12/02/why-dont-more-producers-sell-on-line/#comment-454 Steve Sammartino Wed, 02 Dec 2009 19:50:29 +0000 http://internationalbs.wordpress.com/?p=1657#comment-454 To me it feels like a diworsification, to use the parlance of the great Peter Lynch. It's hard to see any synergy with the purchase for all the reasons that you mention and potential backlash from both competitors (in a supply sense to swell) and retailers who are really the life blood of surf retailers. Just sounds like a company with too much money buying companies because they can. Wouldn't be the first time. To me it feels like a diworsification, to use the parlance of the great Peter Lynch. It’s hard to see any synergy with the purchase for all the reasons that you mention and potential backlash from both competitors (in a supply sense to swell) and retailers who are really the life blood of surf retailers.

Just sounds like a company with too much money buying companies because they can. Wouldn’t be the first time.

]]> Comment on The International BS Book Club IV – Brewing up a Business by Andre Sammartino http://internationalbs.wordpress.com/2009/02/04/the-international-bs-book-club-iv-brewing-up-a-business/#comment-451 Andre Sammartino Wed, 02 Dec 2009 04:46:53 +0000 http://internationalbs.wordpress.com/?p=933#comment-451 By the way, I finally got a chance to sip some Dogfish brewskis while in the US midyear. They were very impressive, particularly the 90 min IPA. By the way, I finally got a chance to sip some Dogfish brewskis while in the US midyear. They were very impressive, particularly the 90 min IPA.

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