Pure play is defined as using comparable firms to calculate a beta.
A pure play company focuses on a single product or activity.Pure play companies are considered to be investing in a commodity or product of a company.[2]
Pure play firms have either a specific niche or little to no vertical integration.A coffee shop may call itself a "pure play" restaurant, while a factory that only produces goods may refer to itself as a pure play manufactory.
Pure play retailers are those that sell only on the Internet.
In finance, the "pure play method" is an approach used to estimate the cost of equity capital of private companies.[3]
The return on B's stock on the relevant stock index can be used to calculate the equity beta coefficients of a private company A and a public company B.The following calculation is used to return the alpha of company A.
TSMC and GlobalFoundries are pure play foundries that do not have in-house design capabilities.Integrated device manufacturer foundries, such as IBM, NEC and Texas Instruments, provide both design and fabrication services.[5]
Pure play e-retailers can serve a wider audience than traditional retail stores.The high cost of obtaining information from these groups is why pure play e-retailers target specific customer groups.[6]
Pure online internet retails don't have brand recognition and reputation at the start-up stage so they lack customer bases compared to companies that integrate both offline and online.Pure plays' customers can't touch, examine and test real products before buying them.Human contact with consumers is considered to be an effective way to respond to questions, provide professional advice and motivate purchases.[6]
Amazon.com customers in mainland UK with pickup codes can get their order at collection lockers in shopping centers and commercial blocks.Amazon opened its first physical store in Indiana in 2015.[8]
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