>>>> Dell is young company with young and recently employed workers.
Dell is one of the original PC companies, it's older than almost all other PC companies.
>>>> Not only do these people use more computers at home, and teach their kids, some leave and start their own business using Dell computers
What? Who are "these" people?
Whoever they are, you can easily use the same words for IBM/Lenova, HP, Gateway, etc.
>>>> 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.
Sorry, but you're confusing Dell with General Motors. HP has defined contribution plans, not pensions. When a worker leaves HP, all costs associated with the worker end.
>>>> If you consider a new company for competition, they have huge and nearly impossible handicaps to entry for doing business Dell's way.
>>>> 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.
You're claiming Dell has "square miles" of space "on or adjacent to large airports?"
Their fixed costs would be astronomical. Companies that aren't run by fools locate their space in low cost, not high cost, locations. If you check again, you'll find that Dell is not at all dumb about where it locates its facilities. Do you realize how big a square mile is?
I think you're mistaken, here.
>>>> 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.
Pretty much all manufacturing in China is located in such zones. One of the biggest such manufacturing groups in China has bought the IBM brand and is now selling direct instead of through distributors like Dell.
Dell doesn't design anything and they don't make anything. They are terrific distributors and marketers of products designed and built in China from templates and components supplied and manufactured by Intel. It's been a winning strategy for a long time, but if the guys who actually design and manufacture the stuff Dell distributes ever get tired of leaving Dell's gross margins on the table, it is over for Dell. |
