23.7 percent increase during the second quarter? I can accept that.>>>>
Here is what other companies would have to do to achieve Dells growth in revenues:
Krispy Kreme would need to add 6,800 outlets to their present 400.
Walgreens would need to add 1386 drugstores and 35,100
employees to run them .
Autozone would need to double their number of stores from 3200 to 6800.
Costco has it a bit easier with rev of 48 bil, would only need to add 100 stores.
And each of these companies would have to add perhaps 25% more stores each year- to equal Dells progress
(In fact Costco might be worth looking into as an investment.)
But it all proves that Kemble is right, if Dell does not stumble Dell will own it all someday.
They do not have time to start building cars, they are too busy keeping up with demand and building new facilities for existing products. And now strong on building the service side .
Our problem with Dell is that the company is still in a growth phase, paying too much for for employee incentives.
Employees who will someday pass along their experience to new hires when Dell is 4 times as big.
Yet companies today must grow or die, because fierce new competitors rise each day.
HPQ knows that, and tries thru acquisitions, but with Dell hot on their tail they are dying anyway. They will do anything to succeed except work. Work to increase their own efficiency, to improve their customer relations, to give each buyer the system he wants instead of the system that has been pre-built.
HPQ Busy in the boardrooms, conceiving and debating new Ads that will sell an obsolete product, shuffling management, and failing to observe that their success or failure will depend upon the men at the bottom, the workers on the factory floor, the planners whose good ideas are wasted by a management who wont listen.
A worker at Dell is going to be busy (hehe) for 8 hours a day. But if he has good ideas, someone will listen to them.
He does not have to worry about being laid off,unless he deserves it. !
And he has the incentives that Dell provides.
Sig
PS: I only own a few shares today, but follow the ever- interesting tale of a man who is changing the rules of marketing.
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