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Technology Stocks : Intel Corporation (INTC)

INTC 45.51

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Jan 9 9:30 AM EST

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To: Paul Engel who wrote (57236)	6/5/1998 12:14:00 PM
From: Harry Landsiedel	Read Replies (1) of 186894

Paul Engel. Re: "I sure hope some MIS guy at Merrill Lynch buys one of these 4-way XEON servers and parks it right next to Kurlak's office so all the ML analysts can be hooked into an Intel Inside XEON Network!" I love that idea. The problem with intel analysts is that they cluster in the semiconductor arena and are used to dealing in "commodity" issues. They aren't businessmen or marketers. Any good marketer can tell you that market segmentation is a key strategy for "owning" a category. Look at P&G in the detergent business or Sloan's original strategy for Gen'l Motors (a car for every price and purpose). With that strategy GM became the undisputed market leader from 1921-1929 and kept that position for 50 years! You pointed out the other key benefit of segmentation--better management of your ASP's. I think intel is on the right track. HL

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