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Technology Stocks : Dell Technologies Inc.
DELL 122.55+4.4%Nov 21 9:30 AM EST
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To: Chuzzlewit who wrote (66886)9/23/1998 1:26:00 PM
From: The Phoenix  Read Replies (1) of 176387
 
The small and medium businesses purchase through channels you say? But not for long - right? DELL wants this market - correct? The indirect model is at a disadvantage due to overhead - correct? So, in order to not lose these customer the incumbents have to change what they're doing - right? So, apparenlty the indirect model will have to change somehow - right?

Now given that you and I are sitting here talking about it I suspect the execs at HWP, IBM, and CPQ are doing the same thing. They certianly aren't saying "let DELL have that market" - are they? So what will they do? I don't know but my suggestion is likely to be one they're looking at. That is, business machines for businesses - tailored for businesses - delivered direct from the manufacturer. In the meantime these same vendors will deliver unique consumer models to the indirect channel - these machines might even have the same or similar "guts", but they will be identified as consumer models by their branding. This gives those business that still want to purchase from the indirect channel the ability to do so, but also allows them to buy "business machines" from the vendor. Since they're business machines they might even charge a touch more giving the indirect channel an slight advantage.

OG
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