Quote:
Originally Posted by Shap
Honestly I don't think offline was ever a problem for my online business. Do you have any examples? Maybe I'm missing something.
And of course Ewa pics are great
|
I might be able to help on this one only because we came out of the brick and mortar offline era into online.
DVD is a great example.
The cost to produce a dvd is fairly steep, especially against the comparable rate of return and the time and energy expended to bring that money back in. The volume of product has continued to deflate the price as companies try to "own" the last shreds of shelf space. So the investment of time and cash to earn that smaller and smaller bit of market is something many companies fail to calculate, especially if they relied on that bit of income at all. Most of the companies in the dvd space have folded or are selling out their catalog for pennies at this point, yet they still spend for the staff to produce and sell, collect, etc.
Many mainstream companies make this mistake too. Think Kodak and Polaroid.