BUSINESS AND MARKETING: Business and Marketing Forum Business and Marketing Articles

Re: A Chicago Giant falls

COW Forums : Business & Career Building

Respond to this post   •   Return to posts index   •   Read entire thread

Neil Hurwitz
Re: A Chicago Giant falls
on Nov 4, 2011 at 4:46:15 pm

Both Walter and Grin are correct here.
With the rise of the internet, and the collective
desire to buy cheap coupled with the rise of the
box stores (think B&H)
there simply is no sustainably business model for lots of
sales oriented houses. It's not that they don't want to change or evolve There simply is no place or space for them to go.
Most of the products we use today are
manufactured overseas and there is very little value added
by the reseller. If you need a Panasonic camera, that's manufactured
overseas and is going to arrive at your place still boxed as it left
the factory, Just what value does any reseller add?
Most modern equipment with high density, dual sided, surface mount circuit boards can't be fixed except at a very sophisticated remanufacturing plant. (Ever try to replace a chip resistor
with a soldering iron) Most sales oriented operations have Salespersons who have very little experience using the product, thus the rise of all the user forums as mentioned by Walter.
All this plus the fact that our stuff is just getting plain cheap
doesn't bode well for VAR'S Just like Home Depot killed off
many lumber yards and hardware stores, It didn't matter what there
"Business Models" were, their days where numbered.
So in short there will be box houses (I bet most here buy from them)
and very high end (think Alexa ) sales organizations but the vast middle is getting hollowed out and no amount of business model tinkering is going to be able to save them.

Posts IndexRead Thread 

Current Message Thread:

© 2020 All Rights Reserved