Rudedog- "Views of Previous Management Team"...I have failed to see where Capellas has PUBLICLY let the world know (exactly) what CPQ "new" strategy....I have mystified by his (total lack of) public personna....I don't get it.............It is rare when a comment by him makes the wire(s)...You never see his face on TV....I've heard absolutely nothing about CPQ's earnings/demand from the company, nor in the future (since he came along)....Maybe he is working hard behind the scenes, but his lack of public presence has allowed Dell (MD) to strengthen his....let's face it, MD owns the "public personna" PC space.....and, it would be foolish to think this is not translating into sales...........Since I've been following Dell......it is amazing how much the brand has strengthened in awareness........Reality or not, it looks like Dell is stomping all over CPQ....Dell commericals seem to outnumber CPQ by 4-to-1, 5-to-1...and, although Dell's commericials are good at best....CPQ's "Better Answers" campaign is pretty lousy..especially the creepy music....
Again, I am talking perception here...but, CPQ's stock is dying on the vine....Do you think Capellas is waiting (until CPQ is closer to a turn) to raise his public personna? If so, does this mean that CPQ is not/has not turned the corner? I don't understand what the boys in Houston are trying to do....
Also, what are your thoughts about this: It appears to me that CPQ/IBM/HP have mostly given up on the "market share" for price game that dominated in 1998....in other words, as a rule, none are willing to frequently underbid for share (at least to an extent as in 1998)...It seemed like the main strategy was (in order to stop) Dell from gaining market share...futile in retrospect....
Given this, and given the obvious signs of consolidation...do you think the market has (at all)priced in this "less competitive" environment going forward......I don't........I mean, it appears that the market HAS priced (negatives) ...like the fact that Dell is no longer the "young upstart"...but, in many respects, leading the pack (and the problems that go along with it)...BUT NOT pricing in the BENEFITS of the gut-wretching consolidation going on....I mean, in 2/3 years....is Packard-Bell/NEC going to be selling PCs...What about HP (in the corporate space)...IBM? Could bidding on large corporate contracts be reduced from 4/5/6 bids to 2/3 in the future?? Isn't that going to help margin, maybe even significantly??
Also, as Dell increases market share, their leverage..pricing power with suppliers should be increasing nicely...widing the gap (price) between them and others.....Has the (apparent unstoppable) trend been priced in either??? |
