ticals), and new foods (nutriceuticals). Shiseido, (he Japanese cosmetics firm, now markets!) portfolio $f dermatology drugs. Qirlstm^S ¿¡OfJji saw the convergence of the computing :md consumer electronics industries as the giants of the computer world such as Dell. Gateway, and Hewlett-Packard released a stream of entertainment devices—from Mil'3 players to plasma TVs and camcorders, The shift to digital technology in Which dei'ites needed to play entertainment ppntent are more and more like KTs. is fueling this massive convergence.1*
■ Retail transformation. Smail retailers are succumbing to the growing power of giant retailers and "category killers." Store-based retailers are facing growing competition from catalog houses; direct-mail firms; newspaper, magazine, and TV direct-to-ensturner ads; home simpping'i'V; and e-commetre on the Internet, in response, entrepreneurial retailers are building eOTCrtai nine til into stores with coffee bars, lectures, dem oust rations, and per* for ma nets. Tltey are marketing an "experience" rather iltan a product assortment, n lyisinicrmedintion. The amazing success of earlv online dot-coms stich as AOL, Ama/Oll, Yahoo, eBay, E'TRADE, and dozens of others who created disititcrmcdiaitdn in the delivery of products and services, struck terroT in (he hearts of many established m a tili fact iireirs and reiailers. In response io d is intermediation, many iradiiional companies engaged in reimet mediation and became "hrick-and-clieli," adding online services to their existing offerings, Many brick-and-dick competitors became stronger contenders than die pure-click firms, since they had a larger pool of resources to work with and wellest ah I is tied brand names.
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