alex, you can look at allot of things, like profit per employee as 80k and they haven't optimize tandem yet. Typical mfg'ing plant has about 10k per employee and the Japanese have about 5k profit per employee....
and , like I predcited when cpq bot tandem that for the 2nd time in histroy Dell has higher profit per employee.
But, when the Tandem engine and world wide low cost kicks in cpq wil again rule the profit per employee( the tandem purchase just added too many people since they had low profit per employee).
Cpq will optimize tandem and be back on top.
bto hasn't been implemented fully(didn't even start bto til novemeber regardless of what a few dellites say), tandem hasn't begun to reap benefits of cluster, account control just getting started,
market share is so far ahead of the others that you have to go back to the old IBM days to find one player with that market share.
cpq has prodcut accross the board from the 799 pc to the multi-million tandems....with a strategy that says that a trillion dollar revenue compnay can operate on client server on micro architecture,
eps share growth aren't slowing down,
inventory turns of 100x on the low cost pc,a doubling of the inventory turns on complete inventory with goals of 30x a yr.,
what about all the billions of cash cpq has sitting around,
what about 27.4% gross margin which is the highest in industry,
and 50+% growth on units,,,they should have thier SAP project finished by end of 1999 and most of the plants and sites are already up on SAP.
the ERP completeion just makes more re-engineering easier,
cpq as the highest % of EDI purchases than all the other competitors put together,they destroyed toshiba in desktops(broke them), and took over the lead in laptops from toshiba,
I'm tired....what about ROE???????????????
Alex, you are just too new to the pc industry that you fail to understand that if you stand pat and optimize ROE you will eventually
fall and fall hard. That's why cpq gambled and added low cost plus added tandem(super high end).
BUy any research report you wnat..the paid, idc, dataquest, price rowe, arthur anderson, you name it...
all the paid research says that becasue cpq does their own SMT and their volumes are twice dell, and systems..
they are the low cost manufacturer and dell is the low cost distributor...
Research SMT. it's in contrained supply and the vendors are charging premiums... dell is having to buy this(SMT is how boards are mfg'ered).
while cpq has some of the best SMT capacity in the world.
I actually dare you to fork out the 300-1000 dollars for a real research report on cost.....
can you explain how cpq makes almost as much margin on their 799 dollar pc as dell has compnaywide 20-25%,,,dell is 22.5% gross margin
Regardless, of this..I'm not like you....Dell is fantastic compnay..so is cpq...
But, dell will suffer 2 qtrs of down cycle next yr. if they down drastically drop cost,,,they still have time to react. |
