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Technology Stocks : Compaq
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To: Jack T. Pearson who wrote (21887)3/15/1998 6:40:00 PM
From: van wang  Read Replies (2) of 97611
 
Jack...if CPQ or IBM went direct...CompUSA, BestBuys, J&R Computers...they will go build to order on their own brands....that will be disastrous for CPQ and others....have u ever try using DELL customer service as a retail customer...they care about the business sector...if you a retail (1 or 2 units), you have to leave a message...think about it your neighborhood computer store build to order at cheap prices (retail chain with volume)...you can get answers that day...for me, I dont care if i have a CompUSA computer as long as the components are the same and they can service better and sooner

CompUSA is already doing it...they also have a booming computer repair business for retail customers

the major computer catalog houses are doing it...

IMO, that is one of the primary reason why the business model is for the resellers to build the machine...because sooner or later they will do it anyway...why should the people in California be the only ones to set up a warehouse and build the computer...no reason...entry and learning curve is not hard nor difficult

so IMO opinion the build to order model is more forced by the large retailers than CPQ or IBM...large chains control the relationships

on the retail front its clear...and on the corporate front its becoming clear you need to have enterprise computing presence (data centers) to sell desktops and servers...less so now than in the future
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