laffen
Joined: Aug 07, 2001
Posts: > 500
From: Oslo, Norway
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I read an interesting article on http://digi.no/ today about why some well known companies don't sell their product via Internet. I'll guess it's the same reason why phone manufactures don't. The article described why brands like Lego and Levis not are selling their products directly to the consumers from the net. If Lego had sold their products from an online store, consumers would have benefited on this in two ways:
1. Cheaper products by reducing the costs to importers, distributors and shops.
2. The customers could have chosen from Lego's entire product range, which no store have today.
But Lego doesn't want to do this. The author claimed that the companies would have gone bankrupt. The "offline" stores would not have appreciate that the product was sold cheaper online and would therefore changed their portfolio to include other brands.
But what will happen if the phone manufactures don't enter the online area? Dell is taking market share from all the well-known brand like Compaq and IBM. IBM has dropped out of the home PC market completely after Dell's entry. Who would have thought that for 5 years ago?
What would happen if an unknown mobile phone brand started selling very cheap phones via net? Would that mean the end of Nokia and Ericsson? Is the brand name of the phone manufactures too well known? Look what happened to Dell. They where unknown once..
Any thoughts?
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Posted: 2002-01-17 18:47
