Gary, your points make for a good argument on the face, but they lack any basis in the realities of this business.
1) The existing indirect marketers are hobbled by their existing distribution systems. This is why they haven't assimilated the direct model, and this is why they won't. Therefore, it is a barrier to entry.
2) Dell is not just a manufacturer of components. To make such a statement really does a disservice to your credibility. Are you trying to tell me that, with the exception of upper management, DELL employees are all either assembly line workers or salesmen? That's what you must be saying.
Manufacturing is defined as the process of making wares by hand or by machinery especially when carried on systematically with division of labor. Sounds just like a DELL factory to me, yet you claim that DELL has no manufacturing capability.
If DELL is just a assembler of parts and it's so easy to build the direct model, why doesn't Intel open up shop and compete with DELL, et al?
If the direct model is so easy to assimilate as you claim, then why are Compaq and IBM (PC operations) having trouble breaking even, at the same time they're having trouble implementing the direct model?
Why are all of the companies with the "better" business model all getting stomped?
Interested in some answers,
LoD
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