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Technology Stocks : Dell Technologies Inc.

DELL 138.16

-1.6%

1:27 PM EST

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To: jim kelley who wrote (48877)	6/24/1998 11:41:00 AM
From: Chuzzlewit	Read Replies (2) of 176387

Jim, I agree, and as you know, have always agreed with your argument on this point. I do take exception with one statement you made: IMO, it was a battle for perceived market share not long term sustainable profits. I believe that the only reason a company engages in a market share battle is to establish long-term sustainable profits at the cost of near term profits. Otherwise, what is the point? Companies generally hope to make their brand names synonymous with the product, like Kleenex or Scotch Tape. Intel tried that with "Intel Inside". Grabbing a huge chunk of market share is a necessary first step in that direction. Ultimately, the strategy involves substituting the brand name for the product in the eyes of the consumer, followed by increasing the price (thereby establishing ensuring profitability) once the company feels that the brand has a perceived value in the eyes of the consumer. Look at the marketing wars in toothpaste, pantyhose and other consumer commodities as examples of how the strategy plays out. TTFN, CTC

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