Hi people..
I want to talk about Dell today...
Now I am not a fanatic dell person, or a "dellhead", but I think we are evaluating Dell in the wrong way...
I read the Book too..
I disagree that Dell is a 'prince with attitude".
Why ?
Here goes:
Dell is not really a boxmaker, as their super-efficient Commerce model is a different creature altogether.
1- Their R&D is Intel & MSFT/maybe Linux now too.
2- Their ROE / ROI is out of this world. They hold the cash from sales before paying suppliers , sort of like AMEX travellers cheques (where they make money on money they keep"
They are a "Cash-King", a really different creature than has been seen before. Name other companies that have this cash on hand for a long time before the "float" has to be repaid.
3- The E-commerce powerhouse factor, now at 40% Sales & rising, I don' know how to evaulate this but it is a incredible business model. People talk of Amazon as an e-commerce powerhouse, but Dell is one also.
4- They are leveraging this "special e-commerce model",to sell more technology, SAN's, partnerships, you name it. It's much more than a boxmaker.
It's really a new kind of company, not a prince, or other boxmaker. What is it ?
A King at least, a E-Commerce King or maybe even a possible E-Commerce Electronics primate ? Or Primate -to-be ?
What other company is even close to doing the same thing as Dell is. I know about the barriers to entry. What other company can sacrifice their Dealer network and "Go fully direct"
They are like a super-efficient "Keiretsu" where they sell direct, have their JIT suppliers close by, and rake in unbelievable amounts of ROE Cash, that they do not really need to run their business.
Hey guys, look at their financials.......
Also, they're model is very, very scalable, as it is not Boxes or the boxmaking that is the business of the company, but the "direct-internet" model , with their SCM implementation (proprietary?) that enables them to dominate the expanding markets it is in, and getting into..
What do you guys think ?
Take care
Jean |
