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No. of Recommendations: 3
Bernie wrote:

I am adding ETYS to my port. It is the Gorilla of the online toy biz which surely will be a high growth industry with all the wealthy baby boomer parents and grandparents buying toys for the tots.

The terminology can get confusing. We saw in the revised edition of 'The Gorilla Game' the authors attempt at addressing the online business model in a chapter towards the end of the book (chapter 12 I believe). It was an attempt to tackle what types of business models had cropped up and would be cropping up that utilize the Internet to build a business model upon. The main four that were addressed were America Online, Yahoo!, eBay and Amazon.com. The term 'godzilla' was introduced to describe the types of dominant players that utilize the internet based business model. In addition, an attempt to use something called the Icarus scoring system to try and establish the solidity of each business model was also presented. These business models are far different from the business model of the companies we hunt and seek in gorilla and royalty games. The Godzillas use the technology (hardware and software) provided by our Gorillas/Chimps and Kings/Princes to set up their shop and facilitate their business.

Hence, eToys would need to be viewed in the realm of an online retailer game. No doubt that online retailing is here to stay, yet the longevity and success of each business model is a game involving much risk and uncertainty as we have seen in the first wave of Internet business models. Eventually, the strong will surface and survive and the next wave of Internet business models will most likely be a 'stronger, more durable breed' after the failure of most of the first wave. I certainly heard the data that online shopping had increased around 100% from the year over year period, so there is no doubt that the companies best positioned to offer such services have targeted a growth niche.

You list in your profile companies like Ciena, Network Appliance and Sun Microsystems. These are all companies in the gorilla/royalty game camp that provide the technology (picks, tools and shovels) that tie in exactly with what we mainly discuss here. Although, I'm one of the few who doesn't mind talking shop in regards to Internet based business models.

BB
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