Friday, December 30, 2011

Amazon.com and Apple Stores

You might ask what amazon.com and Apple Stores have in common but if you look more closely you are looking at two of the most successful businesses on Earth. You likely are looking at the future of how we buy almost everything worldwide as well. Apple Stores are now at $4000 per square foot of store space. Tiffany's in New York used to be the most successsul store model with around $2700 per square foot of store space. amazon.com is quickly eclipsing stores like (Borders) gone, (Barnes and Noble) it's hard to say about Barnes and Noble because they have learned form Borders demise. However, what is really strange is that they have not gained market share from the demise of Borders at all. This doesn't bode well for them. Just like when Circuit City collapsed Best Buy was projected to benefit from their demise. That hasn't happened either. So, what we are seeing is two models, one for online new purchases and one for in store purchases. The ultimate store model existing now is Apple Stores. And for me at present, the ultimate online model  is amazon.com

So, if you are interested in started any business that sells anything you might want to study how both Apple Store and how amazon do things before you start your business. If you try and start a business using a 1980s business model you likely won't succeed in today's market. So, unless you are going to run your business as a hobby or a church bizarre to give you something to do, likely you will want to study what amazon and Apple Stores do and how that relates to whatever you want to sell either online on in stores or both.

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