Dell Technologies Inc. Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc.

DELL 129.98

-6.2%

Dec 12 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: stock bull who wrote (49446)	7/1/1998 12:23:00 PM
From: Chuzzlewit	Read Replies (1) of 176387

Stock bull, The model can be copied by other box makers. I used to believe that. Then I watched a succession of box makers attempt to do that and fail. I suspect that a significant part of the reason has to do with their reliance on channels. To emulate Dell they must jettison distribution channels, but if they do that they will lose significant sales (at least over the short run). The other part of the equation is manufacturing efficiency, which requires maintaining raw material and component inventories at very low levels. But companies like Compaq obtained their cost edge by buying in quantity. So copying Dell will require a major re-engineering of these companies. And inevitably, such shifts will result in at least a temporary loss of sales and an increase in costs. Since these outcomes are unacceptable to managements, they have instead opted to emulate Dell piecemeal. I think the recent financial results of CPQ, HWP and IBM speak for themselves. TTFN, CTC

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next