As far as computer sales, the pundits say direct model. I performed an experiment today on the net comparing two 450 MZH machines with nearly identical hardware, CPQ was selling theirs for about $150 more than Dell, but also offering a $100 rebate if you signed up with their internet service. I even included an an upgraded service contract to match Dell's. So I am not certain that Dell has the upperhand they once used to.
Lot's of people don't like to buy a "pig in a poke" preferring a "hands on" experience that only a distributor can offer. I have purchased computers both ways and still prefer to see the machine and talk to the sales reps about the pros and cons of the various machines. I did purchase a Dell for my son who was away at school a couple of years ago, but that was before CPQ was really offering that type of direct sales.
IMHO the comparison between Dell & CPQ is becoming less apparent. Although they both sell boxes, CPQ appears to be going into a much wider business arena since its merger with Digital, including the internet, CPU development, service, etc. I wonder what would happen to Dell stock if Michael Dell suddenly decides that the only way to continue current growth in his company is to acquire another company and expand his business model? Eventually, growth in even direct sales PCs will have to slow and Michael will have no choice but to look for other means of continuing 30%+ growth.
BTW, isn't direct model just another name for "mail order," and look at what happened to Sears!!!
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