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Technology Stocks : Compaq
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To: Windseye who wrote (20283)3/7/1998 1:47:00 PM
From: Mike Gordon  Read Replies (1) of 97611
 
<Was the sub zero strategy not working?>

I think the primary intent behind the sub 1K strategy was to
a): Gain market share, and
b): impose on DELL just before Christmas. We should have recognized the impact on earnings. Where I live, you can buy a case (24 cans) of Coke for $3.76. Pepsi doesn't stand a chance. From history, look what Standard Oil (ESSO) did. The question is `will giving away CPQ boxes payoff in the future?' It may not. Users of the sub 1K might switch to DELL feeling that the DELL product is a natural upgrade to the CPQ.

Mike Gordon

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