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Technology Stocks : Dell Technologies Inc.

DELL 138.94

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Dec 5 9:30 AM EST

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To: Chuzzlewit who wrote (81370)	11/19/1998 6:44:00 PM
From: rudedog	Read Replies (2) of 176387

Chuz - basically you establish two separate brand identities This was exactly the strategy behind CPQ's creation of the Presario brand in '94. They wanted to develop a 'fighting brand' to take on Packard-Bell, at that time the top dog, without cutting into the Deskpro commercial lines. The strategy worked in the consumer space, and they have done well at positioning the brands as separate value propositions. I think they planned to do exactly the same thing with Gateway. I have heard that there were two separate attempts to do a deal (one was widely reported in the press when Gateway's CEO 'told all' after negotiations fell apart). The new SMB line, with it's current sub-brand positioning, could get elevated to a full brand to pursue this same strategy in the direct space. I don't know if they will do that but it would be logical. Thanks for a thought-provoking post.

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