Archived posting to the Leica Users Group, 1999/10/20
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]Stephen e-business strategies support disintermediation. Not enough of these strategies have been implemented yet to understand the implications of intended and unintended consequences. The ability to play with new/demo Leica equipment at dealers has some role to play in acquiring new customers, probably less so in retaining existing ones. It also depends on the product. I'm going to guess that most experienced users would buy a new 35 ASPH sight unseen, but not a tri-elmar. Will Herr Cohn move Leica to embrace e-commerce? High reward/high risk option, from a generally prudent company? The R8 fiasco aside, do we know if Leica is supply or demand contstrained. The way people have been chasing the new 90, sometimes supply seems to be the limit. just my 2Cents Alistair - -----Original Message----- From: Stephen [mailto:cameras@jetlink.net] Sent: Wednesday, October 20, 1999 4:42 PM To: leica-users@mejac.palo-alto.ca.us Subject: [Leica] Should Leica Follow IBM? According to an article in today's LA Times, IBM is ending distribution of its APTIVA PC line through retail stores. Instead, they will sell them only on the internet -- like Dell and Gateway. I can't help but wonder what it would be like if Leica did the same thing. Today's localized distribution center / sales rep / local dealer network is a dinosaur from Leica's 1930's sales network. Suppose all the overhead of distribution centers, sales reps, and dealer profits were eliminated. Instead, all of that would be replaced by a comprehensive ordering and information system out of Solms. Presumably this savings would mean not only lower prices to the end user, but more profit to Leica as well. Besides profit, it would also improve Leica's cash flow. No longer would Leica have to grant credit to dealers, and await payment. All sales would be paid for by credit card. Instead of layoffs, Solms would be hiring. Imagine emailing Leica, ordering whatever product, and getting a definite delivery date within 24 hrs. Unfortunately this new direct system is not likely to be popular with such people as Leica USA personnel, sales reps, or dealers. However, if Leica fails to survive due to lack of sales, they will be out of a job anyway. Stephen Gandy