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Technology Stocks : Gateway (GTW)

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To: Randy Ellingson who wrote (4553)11/5/1997 2:08:00 PM
From: IceShark  Read Replies (1) of 8002
 
Randy and anyone else, On the store issue: Can someone please explain why this is a good idea?

Lets see, the reason GTW and DELL and MUEI, etc. have become big companies is from the direct sales model. The other boxmakers have taken notice and are moving into direct selling. Now why is GTW going the other direction?

Since GTW has displayed its prowess, or lack thereof lately, in running the direct sales model, what makes them think they can beat out tried and true retailers like CPU, much less their suppliers such as CPQ?

Finally, they will be offering dedicated stores. Much has been said about lack of product depth, especially in sub grand boxes, but what about cross brand shopping? Manufacturers like Harley Davidson can pull this off, but I don't think a commodity computer grabs one's emotions like HD's motorcycles, nor does a computer buyer fork over thousands of dollars for the privilage to just get on a waiting list for delivery sometime in the future.

Regards, Dan
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