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Technology Stocks : Compaq
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To: fooledalot who wrote (59883)4/26/1999 3:30:00 PM
From: rupert1  Read Replies (2) of 97611
 
fooledalot: I know all the arguments for the supremacy of the direct model. But nothing will convince me that most people where I come from and most small businesses would not prefer to deal with a seller who can show and demonstrate the product, install it and be around to fix it or upgrade it. If direct were to offer lower cost, then this would motivate some individuals and perhaps a lot of business to forego the benefits of indirect. But as I understand it, direct is not cheaper to the consumer than indirect.

I appreciate that DELL sells most of its stuff to the corporate customer and that most corporations have informed buyers who can handle direct more easily. I hear all the time that somehow DELL has developed deeper, ongoing relationships with its corporate customers than its competitors have. But I am puzzled why this is so - if it is so. COMPAQ has potential advantages over DELL in this space. Its more advanced technology and broader range of product, its teams of solution designers, and army of service personnel as well as a number of highly qualified re-sellers in key localities. If COMPAQ is lagging DELL in performance in this sector - I would hardly think it arises from a structural disadvantage in the COMPAQ busines model, but from poorer execution. And that can be fixed.
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