Compaq Message Board - Msg: 1733511

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Technology Stocks : Compaq

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To: Douglas Perkins who wrote (3932)	7/9/1997 11:43:00 PM
From: Harry Landsiedel	of 97611

Re: CPQ vs. Dell You make it sound as if Dell's model of custom build is the old "craft" approach which yields superior quality for a higher price. That is not the case. The Dell model is a "mass customization" approach, which allows for LOWER prices due to a combination of lean production AND customization to minimize investment in inventory. CPQ's old model is a mass production process, where inventories are built up for dealers (Just like the autos). It is now shifting to a build to order model, which is closer to the DELL model. HL

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