Tech Giants Make Strategic Moves in 2005: VMH VideoMovieHouse, Intel, Google, Microsoft, and BMW

Strategic Insights -

VMH VideoMovieHouse.com, a US-based online DVD retailer, signed a binding agreement with Wide Open Technologies to acquire DVD Marketplace.com, expanding its presence in the estimated $20 billion 3rd party online sales market. The acquisition is expected to enhance VMH's capabilities in offering competitive commission rates and lower selling fees to merchants, attracting thousands of E-merchants to its platform.

Key Takeaways:

  • VMH VideoMovieHouse.com has acquired DVD Marketplace.com, a platform that will be enhanced and integrated into the company's existing online DVD rental business.
  • The acquisition aims to create an internet powerhouse offering great value to both merchants and buyers, with aggressive marketing campaigns to recruit E-merchants.
  • VMH plans to reduce product handling to a minimum by contracting out fulfillment of sales and rental products as much as possible.
  • The company will focus more on growing its DVD sales revenues in conjunction with its Online DVD Rental business.
  • VMH's existing database of 300,000 past customers will be targeted with cross-marketing efforts to further enhance its online presence.
  • Intel, a major player in the computer chip industry, has taken its rivalry with AMD to the Formula One racing track, sponsoring BMW's Sauber team.
  • The F1 sponsorship deal is expected to reach millions of people, targeting a highly male, affluent, and technologically savvy audience.
  • Google, Microsoft, and Sun have collaborated to fund a new $7.5 million Internet research laboratory at UC Berkeley, dubbed RAD, aimed at developing groundbreaking ideas for a mass audience.
  • RAD lab plans to develop Web-based software services to be given away to anyone who wants it, potentially launching another revolutionary company like eBay or Google.
  • The lab has created an unusual bond between Google and Microsoft, former bitter rivals in the search marketplace.

Statistics:

  • The estimated $20 billion 3rd party online sales market is a significant opportunity for VMH VideoMovieHouse.com.
  • The F1 sponsorship deal is expected to reach over 150 million people per race, a highly desirable demographic.
  • RAD lab has secured $7.5 million funding from Google, Microsoft, and Sun over five years.
  • The lab will employ six UC Berkeley faculty members and 10 computer science graduates initially, planning to develop Web-based software services.

Sources:

  • M2 PRESSWIRE
  • TechStockReview.com
  • CNN Reuters
  • University of California, Berkeley
  • Intel Corporation
  • Advanced Micro Devices Inc.
  • Google Inc.
  • Microsoft Corporation
  • Sun Microsystems Inc.