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Alloy’s management pressed ahead in 2000, making an important acquisition that complemented the company’s increasingly popular alloy.com site. In March 2000, an independent survey firm recorded 1.1 million unique visitors to alloy.com, up substantially from the 263,000 visitors recorded in April 1999. From these visitors, Alloy obtained detailed information on 1.7 million teens who had registered to receive the company’s weekly electronic magazine. To this growing database, the company added another, acquiring Kubic Marketing, Inc. in July 2000. Kubic owned CCS, Inc., a leading direct marketer to teenage boys that possessed a database with 1.5 million names. Once CCS was acquired, Alloy’s catalogs and Web sites became gender specific, with the Alloy brand built around Generation Y girls, and CCS, through ccs.com and CCS catalog, serving as a brand for Generation Y boys.
Although Diamond and Johnson later would stress building advertising and sponsorship revenue, initially the company derived almost all of its revenue from the sale of merchandise. Thanks primarily to the distribution of Alloy, the company recorded $1.8 million in revenue by the end of January 1998, a significant increase from the $25,000 collected the previous year. The losses had mounted, however, driven upwards by the escalating marketing costs the company was incurring. The $1.8 million registered in sales for the year was coupled with a loss of nearly $1.9 million. The following year, the company’s operations gained momentum, snowballing financially in two opposite directions. The financial totals for 1998, which included the first month of 1999, revealed an impressive gain in revenue to $10.2 million, driven by a 460 percent jump in merchandise sales, but the increase was tempered by a loss of $6.36 million.
When the materials are machined, the mechanical forces produce extremely high temperatures. The majority of the heat is generated by the contact friction between the material surface and the cutting edge of the tool. These high temperatures can affect both the workpiece and the tool. Cooling lubricant is therefore used to counteract the temperature in the cutting zone and to reduce the thermal load on the milling cutter. Although the main purpose of the cooling lubricant is to lower temperatures, it also reduces frictional energy and flushes away any chips that are produced.
Dry machiningpdf
Dry machining can be further categorised into two process variants: The tool is either cooled using compressed air or using a small amount of oil, which is dispersed in an oil/air mixture to form a film over the tool. This is referred to as minimum quantity lubrication (MQL). Wet machining, on the other hand, uses cooling lubricant to improve the milling process.
After incorporating Alloy in January 1996, Diamond and Johnson launched their community Web site, alloy.com, in August 1996. Alloy.com offered visitors free e-mail; a channel containing celebrity gossip, horoscopes, and other teen-oriented news items; a shopping channel; an entertainment channel; a chat channel; a sports channel; and a fashion channel, as well as a number of other features designed to attract Generation Y. A majority of the features and services on the Web site were accessible by all visitors, but some of the services required visitors to register. With the information gleaned from registrations, Alloy was able to compile a database of names that could be used to attract advertisers and sponsors to place their business on alloy.com.
Dry machiningprocess
“Goleta, Calif., Ad Firm Will Meld with Generation Y Marketing Company,” Knight Ridder/Tribune Business News, July 24, 2002.
As part of the Internet’s maturation during the early 1990s, the number of community Web sites increased. Community Web sites, like the site launched by Diamond and Johnson, served as online destinations for like-minded users, providing a gathering point tailored to the particular interests of a particular group. Community Web sites also could act as e-commerce hubs, serving as a single site offering products and services related to a particular group that could also draw the business of third-party marketers wishing to reach a particular group. Diamond and Johnson intended to create such a hub, designing it to attract Generation Y and the companies wishing to market products to Generation Y.
Alloy’s losses were not unexpected, particularly in an era notorious for unprofitable e-commerce enterprises. Profits and revenue increases would arrive, according the business plan mapped out by Diamond and Johnson, when Alloy flowered into a genuine multimedia marketer, and its properties could serve not only as a convergence point for Generation Y but also for the commercial interests in pursuit of Generation Y.
"Alloy, Inc. ." International Directory of Company Histories. . Encyclopedia.com. 13 Nov. 2024 .
The cost of expanding Alloy’s multimedia platform continued to increase the company’s annual losses, although revenues swelled. After completing the acquisition of 17th Street, Alloy announced its financial totals for the previous year. Revenues, driven by a 180 percent increase in merchandise sales, reached $28.2 million. One source of revenue that would become increasingly important in the coming years delivered its first meaningful contribution in 1999. The company’s in-house advertising sales group, benefiting from an increased number of visitors to alloy.com, was able to leverage the popularity of the Web site to substantially increase Alloy’s advertising and sponsorship revenue. Efforts to cultivate commercial relationships, which began in 1998 and generated $100,000, produced nearly $3 million in revenue in 1999. For the year, however, the company’s losses widened, increasing from a deficit of $6.4 million to a deficit of $14.9 million.
"Alloy, Inc. ." International Directory of Company Histories. . Encyclopedia.com. (November 13, 2024). https://www.encyclopedia.com/books/politics-and-business-magazines/alloy-inc
Dry machiningtools
Alloy.com represented the first of many media platforms Alloy launched during its first several years of business. Eventually, as the company developed into a multimedia teen marketer, Diamond and Johnson extended their reach into other mediums, either launching or acquiring a spectrum of media properties, including catalogs, magazines, books, and display media boards. Alloy.com was the first company property, however, and, as such, it bore the burden of serving as the lone source of income for the nascent company. By the end of its truncated, inaugural year, alloy.com had only generated a pittance of revenue for the company, a mere $25,000. During that same time span, from August 1996 to the end of January 1997, Alloy accumulated $118,000 in losses. In the years ahead, Alloy would continue to remain unprofitable—not an uncommon financial record for an Internet-reliant company—but its ability to generate revenue improved greatly once Diamond and Johnson began developing Alloy’s business beyond the Internet.
As a manufacturer, we recommend dry machining with air cooling for our tools when working with hardened steel and almost all steels and castings. When milling aluminium, stainless steel, titanium and super alloys, on the other hand, we generally recommend the use of cooling lubricant.
Due to the change in temperature when milling with cooling lubricant, there is an additional risk of “thermal shock”. Thermal shock can occur when the cutting edge makes direct contact with the material (displacement of the cooling medium during the cutting process leads to high temperature absorption) followed by a subsequent interruption in the cutting process as soon as the cutting edge re-emerges from the workpiece. Thermal shock encourages the formation of cracks or chips on the tool, resulting in increased tool wear.
Dry machiningmachine
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It is important to remember that the choice of cooling method is not only dependent on the material, the tool or the type of processing, but is also significantly influenced by the machine and the possible applications. Nevertheless, it simply wouldn’t make sense to use cooling lubricants for some materials, whereas others are naturally better suited to dry machining.
As an alternative to milling with cooling lubricant, dry machining also offers a number of options. Materials such as steel and hardened steels, but also some castings, are suitable for this type of machining. In order to create a controlled dry machining environment, a number of factors must be taken into consideration. These include reduced heat generation (e.g. a smooth coating to reduce the friction factor) and heat dissipation (e.g. the right tool geometry to ensure efficient removal of heated chips). If the conditions are correct, a longer service life can often be achieved with dry machining than with wet machining because of the lower risk of thermal shock loads.
Throughout much of 1997, Alloy, dependent entirely on alloy.com, generated negligible sales figures. The turning point in the company’s financial magnitude occurred after the launch of the first Alloy catalog in August 1997, one year after the debut of alloy.com. In later manifestations, the typical Alloy catalog ranged between 72 and 96 pages, featuring approximately 400 items, including apparel, footwear, and room furnishings. Initially, the merchandise available from an Alloy catalog was geared for both boys and girls, but as the company developed, both alloy.com and Alloy catalogs were designed exclusively for the female members of Generation Y. (Pre-teen, teenage, and college-age males would be given their own domains, both online and offline, once Alloy’s expansion began in earnest).
In the fall of 2001, the company completed a flurry of acquisitions. In October, Alloy purchased Dan’s Competition, Inc., a direct marketer that offered BMX biking equipment and related apparel. The $38 million deal, a combination of cash and stock, was expected to add as much as $15 million in annual revenue to Alloy’s balance sheet. In November, the company acquired Target Marketing & Promotions, which spearheaded promotional marketing programs and media merchandising efforts for clients such as Hasbro, Jose Cuervo, Frito-Lay, and Cadbury-Schweppes. Under Alloy’s control, Target Marketing worked with Triple Dot to create and execute marketing strategies. Alloy also acquired the 360 Youth division of MarketSource Corp., which was perceived by industry pundits as a strategic complement to the company’s acquisition of CASS Communications. Generating an estimated $16 million in annual sales, 360 Youth provided marketing services targeted toward teens and college-age men and women.
Public CompanyIncorporated: 1996Employees: 948Sales: $165.6 million (2001)Stock Exchanges: NASDAQTicker Symbol: ALOYNAIC: 452910 Warehouse Clubs and Superstores; 518111 Internet Service Providers
Generation Y was the first generation to grow up with the Internet as part of daily life. Like Generation Y itself, the Internet was growing rapidly during the late 1990s, developing into an economic force popularly referred to as e-commerce, or electronic-commerce. Industry sources projected exponential growth of e-commerce during Alloy’s formative years, particularly in relation to the company’s target audience. Teen online spending was expected to increase from less than $100 million in 1996 to $1.3 billion by 2002. During the same period, the number of teens and college-age students who accessed the Internet at least twice a week for an hour or more was expected to more than double.
Dry and wet machining is a controversial topic in the machining industry, with frequent discussions about how the machining of various materials can be improved using both methods. Although there are a number of factors to consider, the material properties are key. These properties determine which process should be used to ensure process-reliable manufacturing.
As Alloy celebrated its fifth anniversary and prepared for the future, its management could take pride in the company’s performance. Unlike most e-commerce firms, the company was a success story, a status underscored by the announcement of financial figures in 2002. During the first quarter of the year, Alloy posted a profit, registering $2.5 million in net income, which represented a considerable swing from the $10.3 million loss the company reported for the same period in 2001. On the heels of the encouraging news, the company completed another acquisition, presumably not the last purchase it would complete during through the first decade of the 21st century. In July, Alloy acquired Market Place Media, which focused on marketing to college students, multicultural audiences, and the military. With $48 million in annual revenues, Market Place was added to Alloy’s 360 Youth media and marketing services operation.
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When Alloy entered the business world, the company’s founders, Matthew C. Diamond and James K. Johnson, were only slightly older than the age group that would dictate the success of their entrepreneurial creation. Diamond received his undergraduate degree from the University of North Carolina in 1991. Johnson attended Hamilton College, earning a B.A. in history in 1989. During the early 1990s, the pair worked for
Alloy, Inc. is a multimedia marketing services company that targets the fastest-growing demographic in the United States, Generation Y, or those between the ages of 10 and 24. Alloy uses direct mail catalogs, Web sites, print media, promotional events, and on-campus marketing programs to attract its audience, generating revenue from products and services sold to the youth markets from offering advertisers access to Alloy’s target market. The company’s Web sites include alloy.com and ccs-strength.com, designed for teen girls and teen boys, respectively. The company’s catalogs include Alloy, CCS, and Strength. Alloy possesses a database containing detailed information about roughly ten million consumers classified within Generation Y.
The development of the described enterprise began in earnest not long after Alloy turned to Wall Street. In March 1999, Alloy filed with the Securities and Exchange Commission (SEC) for an initial public offering (IPO) of stock. In May 1999, Alloy completed the offering, issuing 3.7 million shares of common stock at $15 per share, marking its debut as a publicly-traded concern. By the end of the summer, the company had launched its first advertising campaign on television, a $1 million expenditure that saw the Alloy name broadcast on ESPN, Fox, and, primarily, on MTV.
General Electric Co., holding various financial and business development positions at the massive conglomerate. Diamond left General Electric in 1994 to attend the Harvard Graduate School of Business, where he earned his M.B.A. in 1996. When Alloy was incorporated in 1996, Diamond was 27 years old and Johnson was 28 years old. They were two members of Generation X attempting to entice the constituents of Generation Y.
Alloy’s business strategy centered on winning the minds and wallets of the roughly 55 million 10- to 24-year-olds who composed Generation Y in 1996. According to the United States Census Bureau, the demographic popularly defined as Generation Y was expected to reach 63.5 million people by 2015, outpacing the growth of the general population by nearly 20 percent. During the late 1990s, Generation Y accounted for $250 billion in annual disposable income, 70 percent of which was deemed discretionary, according to Diamond’s and Johnson’s estimates. By positioning Alloy as a brand, the founders hoped to garner as much as they could of the $175 billion up for grabs. As the primary tool to communicate the Alloy brand, Diamond and Johnson selected the Internet, the electronic superhighway populated by Generation Y.
Our objective is to become the leading Generation Y media, direct marketing, and marketing services company. We intend to achieve this objective through the following strategies: Increase our sponsorship and advertising revenues by cross-selling and marketing our unique integrated platform to advertisers; grow and refine our Generation Y database to expand our merchandising business and advertising opportunities; expand the number of Generation Y consumers we reach through our existing or new media franchises; broaden our platform through strategic acquisitions.
At a time when most e-commerce firms were resigned to treading water, Alloy pursued expansion aggressively. Diamond believed the economic and market conditions provided an opportunity for the company to acquire other firms, which led to a buying spree that began in December 2000. The company purchased Triple Dot Communications, Inc., a marketing services company the helped other companies identify the members of Generation Y. In February 2001, Alloy acquired Strength magazine, a skateboarding lifestyle publication that the company subsequently melded with CCS, creating ccs-strength.com. The following month, Alloy purchased Carnegie Communications, Inc., a publisher and Web site operator that provided information on colleges and universities to teens. In July 2001, Alloy reached an agreement to acquire CASS Communications, a leading owner of rights to sell advertisements in college campus newspapers across the country.
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The use of coolant is often essential for materials that tend to stick, for example certain aluminium and stainless steel alloys. The built-up edge that forms can sometimes lead to a distortion of the tool geometry and, in the worst case, can damage the cutting edge. However, despite the fact that machining with cooling lubricant is often very effective when working with metal, this method is still associated with considerable effort and related expenses. For example, choosing this method may involve investment, disposal and personnel costs.
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115 West 26th Street, 11th FloorNew York, New York 10001U.S.A.Telephone: (212) 244-4307Toll Free: (888) 452-5569Fax: (212) 244-4311Web site: http://www.alloy.com
In December 1999, Alloy followed up on the television advertising campaign with the acquisition of Celebrity Sightings, LLC. Based in Marina del Ray, Celebrity Sightings operated a Web site featuring an online magazine revolving around teen celebrities. The following month, Alloy acquired 17th Street Acquisition Corp., a New York-based developer and producer of media properties for teens. As the company that had produced best-selling teenage books such as Roswell High, Fearless, and Sweet Valley High, 17th Street was embraced by Diamond. In a January 17, 2000, interview with Publishers Weekly, he referred to the acquisition, saying it “represents another step toward our long-term goal of expanding Alloy’s multimedia platform.”
Although dry machining implies a lack of lubricant, a minimal number of drops of lubricant can be added in the form of an air/oil mixture. This differs from machining with cooling lubricant in that the tool is not fully immersed in the lubricant. The lubrication is delivered directly to the cutting edge at timed intervals during the machining process. This provides better lubrication than completely dry machining and reduces the frictional heat generated during the machining process. The advantage of both machining with minimum lubrication and wet machining with cooling lubricant is an improved surface quality during the finishing process.