1. E-Marketing MBA Course 1 E-commerce Several myths,one reality Jacques Nantel Ph.D May 2003

2. The e-sky is falling! (Amazon.com)

6. Amazon Market Cap. (before split) –June 1999323,000,000 shares @ 110$ –June 2002375,000,000 shares @ 15,34$ –May 2003391,719,000 shares @ 29$ –1999 35,5 billions –2002 5,6 billions –2003 11,0 billions

7. Shareholders’ expectations Assuming a P.E. Ratio of 10 This would have meant, in 1999 profits of 3,5 billions $ This would mean, for 2002 profits of 560 millions $ This would mean for this year profits of 1,10 billions $

8. Oups…………. The total US market for books is 60 billions $, for potential profits of 2,5 billions $

9. Amazon.com (millions $)

10. Good and bad news (millions $)

11. Yet…. There are more consumers surfing Who stay longer on the net And who buy more and more

13. Prévisions en 1996 vs actuel (marché USA, en millions $)) AnnéePrévisionsVentes 200012,090 $27,885$ 200117,307$36,916$ 200245,540$ U.S. department of Commerce Feb. 2003

14. In brief, a growing market but one has to understand the real opportunities Internet will not be the revolution that some had predicted It will not be a fade For most retailers it will be a necessary evil

15. Building a new distribution network does not create any new demand There are not two types of consumers one virtual the other one tangible forget the first mover’s advantage Technology is important but brand equity and bricks are key Some dying myths