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Technology Stocks : Dell Technologies Inc.

DELL 122.70

+0.2%

Nov 18 3:59 PM EST

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To: The Phoenix who wrote (66652)	9/22/1998 7:00:00 PM
From: mrknowitall	Read Replies (1) of 176387

Gary, this is highly reminiscent of the issues manufacturer's reps and smaller manufacturers face and reface (if that's a word) every day. One real problem arises, IMO, in the manufacturer's reputation over the longer haul. Channels have memories. If a strategic shift away from channels is detected, it creates tension. As any real shift begins, the Channel is almost immediately focused on replacing the revenue stream and keeping their customer base. That is perfectly normal. What a vendor sometimes neglects to recognize is what may happen a year or so down the road when some market paradigm shifts again and the vendor is now faced with trying to get back in the good graces of the channel - usually with a new product aimed at a market that the channel is particularly suited to deal with. Having the channel relationship keeps the doors open for the appropriate distribution of new products into new markets. There are some manufacturers out there that are all but blacklisted because of their uneven performances with channel partners, and they make strategic "let's not do it" errors because they can't accurately assess their potential to move a product. Mr. K.

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