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Technology Stocks : DELL Bear Thread

DELL 127.22

+3.8%

Nov 24 3:59 PM EST

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To: jjs_ynot who wrote (243)	3/20/1998 11:49:00 AM
From: rudedog	Read Replies (1) of 2578

Perception will be the key here. If they can satisfy the requirements for service through a model which actually subcontracts most of the work, and give customers the feeling that Dell still 'owns' the service responsibility, they may be able to pull it off. That is what CPQ tried to do with their global service program in 1995. CPQ came to the conclusion that customers especially in the high end were not buying the concept, also that leading with service would be the key to rapid growth against HP and IBM - this was in a lot of the press material around the DEC acquisition. Dell has been more adept than CPQ at selling the sizzle. I think they will continue to drive their high leverage model as long as growth stays on track.

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