Egghead Scrambles to Virtual Retailing

http://www.techreview.com/articles/nov98/ditlea.htm

This November 1998 article explains how Egghead Computer, which had 250 retail hardware and software stores in 1992, shut its last store in early 1998 and repositioned itself as a Web-only retailer.

Questions:

1. Summarize the reasons for Egghead's transformation into an online retailer.

2. Assume you wanted to buy a common software product. How would you know that Egghead sold it and how would you decide whether to buy it from Egghead?

3. Identify Egghead's current sources of competitive advantage and its current weaknesses.

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