A. First, you are assuming that the price is inflexible and that CPQ beats DELL by
$200 a machine. ALL of the anecdotal evidence I have heard is to the
contrary--DELL has the pricing advantage.
Perphaps you should check for yourself. Anyway, as I mentioned another fellow a couple of posts ago, pricing is a VERY poor way to compete. It is easlily replicated. Question is where is DELL's value add
B. Every PC magazine report I have seen for the past 18 months lists DELL in a
higher consumer confidence position than CPQ. So perhaps that says something for
DELL quality.
Is this consumers or business users? You respond to different questions using a different basis. The next response is positioned at business users as is the last one. DELL quality? Now you have me laughing. DELL's components are no different than any other manufacturer might or could use. Again...no barrier to entry. What keeps a wealthy businessman from coming in a copying DELL? Answer so far is NOTHING.
C. DELLs come with a much superior on-site warranty. Say, 10% of your
machines (from either company) have problems each year. If DELL can fix theirs
next day, and you have to wait 'x' days longer for CPQ to fix theirs, then that is
effectively equivalent to 10x man-days per year. Now you determine the value of a
"man-day" in your organization.
Well, I get same day serive on my CPQ machine for a year. What is DELL's policy? I believe it's the same....?
D. DELLs come with YOUR customized corporate software installed, if you wish.
THis is a very cool thing to do and the first unique thing anyone has posted up to now. HOwever, still no barrier to entry...and still a distribution practice.
Now, re your Isn't DELL just a distribution company?
ROFLMAO. Great sense of humor.
OK wise guy... My questions were legitamite and you still haven't proved much beyond distribution practices which can be copied by anyone with a garage, a screw driver, and a server. So, while you're down there on the floor think about why this companies stock is way out of control... Is this sustainable given the ease with which companies can target DELL. Remember, everyone guns for #1...er...a #2...aspiring to be #1.
OG |
