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Technology Stocks : Dell Technologies Inc.
DELL 138.80-2.7%Nov 11 3:59 PM EST

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To: Mohan Marette who wrote (24821)12/11/1997 3:54:00 PM
From: jim kelley  Read Replies (1) of 176387
 
>><Now they are in the process of getting rid of the ~90% of their
>>channel.>

>Not quite true,if i read the news release correctly.The way I
>understand it they will choose 400 or so channels as 'approved
>channels',but anybody can sell CPQ if they want to,they just won't
>have the 'approved dealer' status.

Yes. So ~10% of the channel will be Compaq approved dealers
and the other 90% will be Compaq disapproved dealers.
This means the disapproved dealers will be allowed to unload their
excess inventory of Compaq computers. It also means that Compaq
does not have to take back the excess product. No wonder they are trying to stuff the channel!

>><CPQ vowed loyalty to the channel>

So why make public statements to that effect?
I think the answer is that they had to lie to avoid a early revolt by their
channel.

>I suspect in cut-throat business environment these days the only
>loayalty anyone can expect is to 'themselves'.I would think by now
>(for better or for worse,) the days of 'life-time employment','customer
>loyalty' and like have gone into obscurity,if you ask me, at least this
> is the impression i get from watching the present day business
> practices around the world.

Why can't we all just get along....( Rodney King)

>><This is an tacit acknowledgement by CPQ that their customer
>>service is not adequate. This has been supported by numerous
>> articles in the rags.>

>If this is true, then any action by the company to improve the
> situation should be applauded.

Applause is probably too strong a response. I approve but I find difficult to applaud. They have known about these problems for along time.


Regards,

Jim Kelley

P.S: I do not mind a little fluff if it is well done.
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