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Technology Stocks : IBM
IBM 309.25-0.5%3:59 PM EST
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To: Art C. who wrote (2519)2/19/1998 1:05:00 PM
From: ahhaha  Read Replies (1) of 8218
 
There is more exposure on the internet? Through Java applets? Through reseller's sites? More exposure in comparison to what? Are we talking small business partners and PCs? Do small businesses buy hardware over the internet or from a reseller? What do you or does IBM mean when you say spend more on business partners? Cash advances? Reduction in hardware price? Doesn't that undermine the reseller or reduce IBM's bottom line?

IBM's strategy can only work if there is an improvement of efficiency, not if there is a shuffling of costs and responsibilities to the reseller. A shuffling will only be an incentive to the reseller to push competitor's products. IBM has to handle the same level of inventory regardless of whom adds value through assembly. If IBM is pushing more of the final product assembly onto resellers, that seems even more disincentive to push IBM product.
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