Ok folks, I am really trying to understand the issue. If DELL can control costs and aggressively undersell other people, why some other company can't do the same? Is there something supernatural in Dell's ability to do this, or what? Help me out here, please.>>>
Ok, be glad to.
Dell is young company with young and recently employed workers.
Not only do these people use more computers at home, and teach their kids, some leave and start their own business using Dell computers
Dell does not have to pay the perks and retirement for all the left-over Executives that HPQ inherited from CPQ, Tanden, Digital. and HP nor adjust to their demands.
If you consider a new company for competition, they have huge and nearly impossible handicaps to entry for doing business Dell's way.
I wont state all those here, unless you ask what they are.
An example would be that Dell owns (or leases) many square miles of space adjacent to or on large airports to expedite component movement and shipping.
Their factory in China at Xiamen is in a safe zone specifically set aside by China to encourage foreign investment and protected from most barriers to entry.
They planned ahead, a long time ago !
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