CYBERIAN OUTPOST INC

CYBERIAN OUTPOST INC

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Company Overview
Cyberian Outpost, Inc., incorporated in 1995, is a private firm that offers on-line retailing of computer hardware, software and peripheral products for the home and office. The company is based in Kent, Connecticut.
Cyberian Outpost’s product offerings include a selection of computer components, such as hard disk drives, memory, and networking gear. Outpost.com also sells such consumer electronics as audio and video equipment, cameras, and automobile electronics, along with CDs and DVDs. It also offers a wide range of personal computers, notebook computers, and handheld devices, as well as productivity and entertainment software. In addition, the company provides eBusiness services that offer end-to end e-commerce solutions for a variety of partners. These services include Web site design and hosting, product merchandising, as well as order processing and fulfillment.
Cyberian Outpost has strategic alliances with the following Internet content providers and portal sites such as America Online, Lycos-Bertelsmann, StarMedia, Excite, theglobe.com and MetaCrawler. Further, the company operates as a subsidiary of retail chain Fry’s Electronics, specializing in software, consumer electronics, computer hardware and household appliances with a chain of superstores.
Business Summary
Cyberian Outpost, Inc. is a global Internet-only retailer featuring over 175,000 consumer technology and related products for the home and office. The Company’s online “superstore” at www.Outpost.com provides one-stop shopping for domestic and international customers, 24 hours a day, seven days a week. The superstore features computers and accessories, software, consumer electronics, cameras, and other high-end consumer products. The Company also provides eBusiness Services that offer end-to-end e-commerce solutions for a variety of partners. These services include Website design and hosting, product merchandising, and order processing and fulfillment. In November 2001, the Company merged with Fry’s Electronics, Inc. As a result of the merger, Outpost.com became a wholly owned subsidiary of Fry’s. Outpost.com will no longer be publicly held.
Description and history
Cyberian Outpost, Inc. is a global Internet-only retailer featuring over 175,000 consumer technology and related products for the home and office. As of February 28, 2001, there were approximately 1.3 million Outpost.com customers worldwide, the majority of whom have shopped at Outpost.com during the last 24 months. The Company’s online “superstore” at www.Outpost.com provides one-stop shopping for domestic and international customers, 24 hours a day, seven days a week. The superstore features computers and accessories, software, consumer electronics, cameras, and other high-end consumer products. The Company works with the computer industry’s foremost suppliers, and is an authorized Internet reseller for most leading manufacturers including IBM, Apple, Compaq, Sony, Hewlett Packard, Acer and Toshiba. The Company also sells software for leading publishers including Microsoft, Symantec, Adobe, Apple Software and Intuit. Additionally, the Company offers downloadable software and online licensing. Outpost.com also offers a full range of consumer electronics in the Tweeter.Outpost.com store and consumer products in the www.Brookstone.com store. In November 2001, the Company merged with Fry’s Electronics, Inc. As a result of the merger, Outpost.com became a wholly owned subsidiary of Fry’s. Outpost.com will no longer be publicly held.

The Company also provides eBusiness Services that offer end-to-end e-commerce solutions for a variety of partners. These services include Website design and hosting, product merchandising, and order processing and fulfillment. Current eBusiness Services clients include retailers such as Brookstone, Inc. and Tweeter Home Entertainment Group, Inc. eBusiness Services leverage the Company’s investment in operating systems and facilities to generate new product and service revenue streams.

eBusiness Services–eBS

Through eBusiness services, Outpost.com has developed relationships with some of the country’s premier retailers and built alliances with established Internet brands. The Company began its “Clicks & Mortar” partnership strategy in 1999 by combining forces with Tweeter Home Entertainment Group, Inc. in a joint venture company to sell consumer electronics on the Internet. This type of relationship has allowed the Company to develop and provide either end-to-end co-branded or private label sites.

Outpost.com has also focused its efforts on developing lasting e-commerce relationships with established Internet companies. These relationships give the Company access to a broad audience. Through the retail partnerships and e-commerce relationships, Outpost.com now has relationships with a diverse group of leading retailers who give it access to approximately 300 U.S. storefronts.

The Company’s Website

The Company believes that its Website is an attractive, intuitive and easy-to-shop online superstore that delivers a superior shopping experience and provides a competitive advantage for its customers. As with a physical retail store, customers can browse the departments of the store, search for specific needs, look at promoted products, obtain product information, order products and ask for customer service. In contrast to a physical retail store, the consumer can look at over 175,000 products and accomplish the shopping experience in the comfort and convenience of his or her home or office.

Products on the site have been categorized into tabs, departments and sub-departments. Outpost.com has also developed a series of tabs that are dedicated to products brought to it by its partners. A convenient store map lists all of the departments and product categories. By clicking on the tab or department name, the consumer can quickly target products of interest. Permanent categories, such as Computers, Games, Electronics by Tweeter and Innovations by Brookstone, are dedicated stores displayed with tabs.

A primary feature of the Website is its interactive search engine. The Company provides a selection of search tools that allows customers to find items based on pre-selected criteria such as product type, platform, manufacturer or publisher. Customers are also able to use more complex and precise search tools such as search queries.

To purchase a product, a customer can simply click on a button to add the product to their virtual shopping cart. Just as in a physical store, a customer may add and/or subtract products as they browse through the Company’s merchandise prior to making a final purchase decision. Once a customer is finished shopping and clicks on the “Proceed to Checkout” button, the site features a simple three-step checkout process. To complete the checkout process the customer simply: enters his or her billing and shipping information; reviews the merchandise being purchased and chooses from the different shipping options; and enters credit card information for payment.

Once the checkout process is complete, the customer then clicks the “Submit Order” button. Customers may also set up an Express Account with the Company using the “Remember Me” feature with their email address and a password for quick checkouts on return shopping trips.

Many feature locations on the home page and throughout the store are available to advertisers wishing to increase their Internet presence and target the Company’s sophisticated user base. The in-store promotional banners advertise a variety of manufacturers’ and publishers’ products on a continual basis. Additional promotional opportunities are available throughout the store in the form of sponsorships of products in specialty shops, manufacturer showcases, featured product spots, targeted email offers, and banners and buttons for special offers.

The Company actively works with manufacturers to create special bundles of products and to secure special offers exclusively for its customers. Such specials are featured prominently throughout its Website. Weekly, seasonal, holiday and special promotions are displayed on banners or tabs and can also be targeted directly to interested customers via email.

Detailed product information is provided throughout the store. After selecting a product, the customer is supplied with a comprehensive description, system requirements, product packaging and pricing information. One of the advantages of an Internet retail store is the ability to interweave editorial content and product information. The Company has a team of writers that creates product information and other content for the site. The Company believes that fresh and entertaining content adds to the customer experience, increases conversion rate (the number of visitors to the site who make purchases) and differentiates the Company from other online retailers. Throughout the store “advisors” help customers choose the correct components needed for their individual system, such as laptop batteries, cables and memory upgrades.

Business Line
Offers on-line retailing of computer hardware, software and peripheral products for the home and office
Subsidiary

Advisor
KPMG LLP
IPO date

US SIC Code
5734
Company Address
PO Box 636
23, North Main Street
City province or state postal code
06757, KENT, CT
Phone: +1 860 927 2050
Fax: +1 860 927 8375
Country address: UNITED STATES OF AMERICA
Website url: www.outpost.com