Kangaroo8
join:2000-08-11
Peoria, AZ
clubs:
| reply to stray
Re: Oh my! What a surprise!
said by stray:
NorthPoint (and other DSL CLECs) always had such an excellent business model.
1.) Nothing really proprietary in their product.
They didn't understand value-add
said by stray:
2.) Their main supplier is their main competitor (ILECs)
That's like Sears buying from Sharper Image at catalog prices and trying to resell the same thing.
said by stray:
3.) They don't collect revenues from customers, but instead, allow 3rd parties of sometimes dubious financial strength to manage all aspects of the customer relationship.
Like coming up with a great product, but letting your evil idiot brother-in-law do the selling. Right after his prison sentence is done.
said by stray:
4.) The only possible competitive advantage they have is price cutting.
See number one above. You CANNOT three-step a commodity, someone always gets screwed (farm subsidies). When you think it is a commodity, you've lost (at least) half your margin.
said by stray:
5.) They are unable to inform customers whether they can deliver their product until months after the customers have ordered (and possibly committed to a long term contract, preventing those customers from signing with a competitor for the waiting interval)
Yes, well this one mainly falls on the uninformed. There was plenty of info out there to make an informed decision. I don't pity folk who get rooked by grifters either. Hard, but life ain't for the stupid.
said by stray:
6.) Despite being in the information technology business, they can't manage their own customer database for months on end.
Careful analysis reveals they were in the "set up the ball for the VC folk, sucker the foolish B'school teenagers into IPOing it for us before this house of cards is revealed for the complete fraud it is and get out with tons of cash" business, not a technology business. Anyone watch that show "Bull" or "The Street"? These 'wizkids' were still in high-school when the last bear market was extant.
said by stray:
I'm sure this list could be extended..... What the heck were these guys (and gals) thinking when they cooked up their business plan!
See number six.
--
I'm your huckleberry. . .that's just my game
[text was edited by author 2001-01-17 01:18:39] |
