Gary,
Thanks for the summary post.
The question I ask myself is why is Dell so successful. The answers the bulls (I'm one) have come up with are mostly rational, from the aggressive JIT/BTO model down to Michael's personality. You don't accept these arguments.
But what counts is performance of the business, or execution, right? Not only performance in boom times like right now, but in bad times like when the notebook line was a disaster and when the attempt at discount chain distribution failed. Dell does seem to have its act together, and Michael has a good PR group writing articles in HBR to sell the concept of DELL as a major player.
Is it fair to say that DELL's performance has been stellar? Isn't it also true that just duplicating DELL's business model is not sufficient to guarantee success? That conditions for expansive growth are always changing, so you can't go back and do it again the same way? DELL's a heck of a company, and every competitor appears to have a problem which will prevent them from hurting Dell. Inventory, overseas markets, channel delay, etc. Do you really think that someone with enough cash could duplicate DELL's business enough to impact DELL? Would it make economic sense at this point to do that?
I think that DELL has been in the right places at the right times, has made good decisions along the way, and is executing flawlessly. It's going to be a tough act to follow, and a tough act to keep up. For right now, however there's no sign of faltering.
Best wishes,
Stewart |
