Pure play

Pure play

In e-business terms, a pure play is an organization that originated and does business purely through the internet, they have no physical store (brick and mortar) where customers can shop. Examples of large pure play companies include Amazon.com and Netflix.com. There are also many smaller, niche oriented pure play mail order companies such as women's travel accessories company [http://www.christinecolumbus.com Christine Columbus] , fashion jewelry merchant [http://www.jewelsofdenial.com Jewels of Denial] and cycling goods supplier [http://www.lickbike.com Lickton Bike Supply] . With a much lower barrier to entry, the Internet affords smaller companies the ability to compete with much larger brands due to typically lower overhead and marketing costs. Though multi-channel marketing is a hot buzzword, there is still plenty of growth opportunity for pure play merchants.

In financial management, a pure play is a company whose shares are publicly traded and that either has, or is very close to having, a single business focus. [cite book|title=Financial Management in Health Care Organizations|author=Robert A. McLean|year=2003|publisher=Thomson Delmar Learning|isbn=0766835472|pages=221|chapter=Special Topics on Capital Budegeting] Coca-Cola is an example of a pure play in this context because it retails only beverages. On the other hand, Pepsi is not a pure play because it also owns the Frito-Lay snack foods brand.Fact|date=February 2007

The pure play approach or pure play method is a method for estimating the cost of capital for a proposed new project or product line. It involves examining other companies which are pure plays in the proposed line of business and infering a cost of capital based on their capital structures (eg Debt-to-Equity ratio) and betas. [cite book|title=Financial Management: Theory and Practice|author=Eugene Foster Brigham and Louis C. Gapenski|pages=486|year=1985|publisher=Dryden Press|isbn=0030980666]

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ee also

*Diversification (strategy)


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  • Pure play — (de l anglais américain, « acteur pur »), est un terme de commerce électronique désignant une entreprise ayant démarré et exerçant son activité uniquement sur internet. Une pure play ne propose par exemple aucun magasin où ses clients… …   Wikipédia en Français

  • pure-play — UK US noun [C] ► COMMERCE a company that sells only one type of product or service: »We are the most successful pure play in the restaurant sector. ► E COMMERCE a company that operates only over the internet, and has no physical stores: »… …   Financial and business terms

  • pure play — A company involved in only one line of business. Bloomberg Financial Dictionary * * * pure play ˌpure ˈplay noun [countable] COMMERCE a company that is only involved in one kind of business activity : • Online pure plays are veterans of the… …   Financial and business terms

  • Pure Play — A company devoted to one line of business, or a company whose stock price is highly correlated with the fortunes of a specific investing theme or strategy. For example, a startup R D company developing a new technology would be considered pure… …   Investment dictionary

  • pure play — A company that is dedicated to a single narrowly defined activity, as opposed to one that has diverse interests. Investing in a pure play is therefore much the same as investing in the commodity or product that the company deals in …   Big dictionary of business and management

  • Pure-play semiconductor foundry — A pure play semiconductor foundry is a company that does not offer a significant amount of IC products of its own design, but instead operates semiconductor fabrication plants focused on producing ICs for other companies.Fact|date=February 2008… …   Wikipedia

  • pure play — noun [usu. as modifier] a company that focuses exclusively on a particular product or service in order to obtain a large market share. ↘a company that operates only on the Internet …   English new terms dictionary

  • pure play —  Investment in a company that is in only one market or industry …   American business jargon

  • Pure player — (de l anglais américain « acteur pur ») désigne une entreprise ayant démarré et exerçant dans un secteur d activité unique[1]. L expression est toutefois popularisée pour désigner les entreprises œuvrant uniquement sur Internet et est… …   Wikipédia en Français

  • Play (activity) — Play is a rite and a quality of mind in engaging with one s worldview. Play may consist of amusing, pretend or imaginary interpersonal and intrapersonal interactions or interplay. The rites of play are evident throughout nature and are perceived… …   Wikipedia

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