Hi Geoff,..Re:<<I would agree with you that PCs are a commodity.>>
Excellent post and you made many valid points, especially the value added point which, in the case of Dell, translates to ROIC far and above industry average. But I can't agree with your assertion that PCs are a commodity. I think Chuzzie pointed out that oil and sugar are commodities, although Websters says that it could be any article of commerce, or any useful thing. When one thinks of commodities, the most apparent point of a commodity is the lack of differentiation.
Since you pointed out the very obvious differentiation Dell delivers in their products, I think you may have invalidated your point. But, apart from the product, Dell delivers service, business savvy, and shareholder value which is unequalled in it's business environment. Just MHO.
Regards,
Lee |
