Captain ... Here is more of what MD said
11/02/99 - Detroit Free Press Doron Levin Column
Nov. 2 (Detroit Free Press/KRTBN)
DELL CHIEF TAKES DIRECT AIM AT TOP
tscn.com
Here is what MD said about CPQ:
His one-word answer to a question from the audience whether Compaq Corp. can bounce back from its doldrums: "No." Elaborating, he offered Compaq customers in the audience the chance "to save you money and to take away the risk of going through tumultuous transitions" by switching to Dell.
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The direct-manufacturing model, Dell has explained often, is a great concept for a company that hasn't already hired retailers. Those, like Compaq, that initially distributed their products through retail stores are stuck. They can't withdraw from the stores because dealers have invested time and effort selling their machines.
Compaq's dilemma is similar to that of the automakers. Car companies want to use the Internet to move to a direct manufacturing model, but franchised auto dealers are resisting the effort and have pushed for strict laws that protects franchisees.
In Dell's view, the automakers must press forward as users of the Internet. "In a sense they're moving in that direction anyway, since the profits of dealers are moving away from new car sales and toward service," he said. Until they can come to a meeting of the minds with dealers, Dell suggested, they ought to use the Web to communicate with suppliers.
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