The Cannibals We Like Most

1
The Cannibals We Like Most

• Fortune Sept. 1999
• Jerry Useem

2
Cannibalism

• almost half of all auto dealers see the Internet
  as a threat to the traditional franchise system
• software vendors have been slow to sell online
  for fear of angering key distributors
• attempt not to upset sales channels in the
  brick-and-mortar world
• brokerage house - if they embrace the Internet
  they risk alienating the brokers that generate
  95 of their revenue
• yet 17 of all retail stock trades last year were
  Internet-based and rising

3
Stimulation???

• Intuit sells through both channels and the prices
  are slightly higher online due to retail
  discounting
• Barnes and Noble has seen record sales in its
  stores in the last months since the online store
  was launched
• CompUSA is taking advantage of both channels, you
  can buy online and take it to a store to repair

4
Bank One

• John McCoy WingspanBank.com A completely virtual
  bank, Wingspan's cost structure lets it offer
  more attractive rates than its parent.
  Twelve-month CDs pay 4.97 at Bank One, 5.70 at
  Wingspan.

5
Charles Schwab

• David Pottruck Schwab.com(originally
  e.Schwab) Discount brokerage established a
  separate unit, e.Schwab, that subsequently ate
  Schwab. An inspiration for all would-be
  cannibals, and the only clear-cut success story
  of its kind to date.

6
PetSmart

• Philip Francis PetSmart.com Pet-supply chain
  partnered with Internet incubator Idealab to
  create a stand-alone Internet company. By
  retaining only a 49.9 stake, gave spin-out a
  free hand to compete against physical stores.

7
Romac International

• David Dunkel KForce.com Huge staffing company is
  courting Wall Street's wrath as it radically
  Webifies. CEO Dunkel says, "We have to go through
  purgatory in order to get to heaven.

8
TMP Worldwide

• Andrew McKelvey Monster.com An advertising agency
  once focused on print recruitment ads, TMP is now
  firmly in the maw of its interactive division,
  anchored by the fast-growing job board
  Monster.com.