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Technology Stocks : Dell Technologies Inc.
DELL 120.60+1.8%Jan 9 9:30 AM EST
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To: kemble s. matter who wrote (164774)4/17/2001 9:48:27 PM
From: Bill Jackson  Read Replies (3) of 176387
 
kemble, GTW killed itself with retail stores that added costs and reduced margins when people bought mailorder to save sales taxes.
How many places in the USA does dell collect sales taxes for? I suspect there are some, but niot many. GTW must collect for any state it has a store in. Same for IBM etc.
IBM and CPQ could not make low cost machines. They were all built like tanks and cost a lot more. IBM and CPQ also paid homage to their distribution channel and kept them fed and watered at great expense.
All the others feel for the trap of traditional distribution and paid the price. Anyone can copy dell, there are a few tiny ones that do copy dell, but they are behind the curve of economies fo scale. dell can order 200,000 parts a week of the same thing and use them....few others can do that.
All dell computers are stripped of any frill or costly specials cases etc, they are all snap together for easy assembly with untrained people.

Easy to copy, but to copy now you would have to make the name and make the volume before sales caught up. CPQ could do it. they would have to burn their distribution network at the stake and go into it whole hog, or they will die. I think CPQ will die a slow death as the dumb assed shirts in head office cling to their methods as the ship sinks.

Bill
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