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Technology Stocks : Dell Technologies Inc.
DELL 133.42+2.2%2:44 PM EST

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To: Uncle Frank who wrote (84998)12/12/1998 12:32:00 PM
From: Mohan Marette  Read Replies (1) of 176387
 
Alain Coulder,Packard Bell on strategies-Direct vs Resellers.

Uncle:
I have a feeling these guys haven't a clue let alone strategies.<g>
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AN INTERVIEW WITH ALAIN COULDER: PACKARD BELL NEC


Dec. 11, 1998 (Computer Reseller News - CMP via COMTEX) --

CRN: What compelled you to change strategies?

Alain Couder: What we have done in terms of strategy is try to understand how we differentiate ourselves from the competition. IBM [Corp.], Hewlett-Packard [Co.] and Compaq [Computer Corp.] are also in the service business at a point where most of the resellers are moving toward services, more and more. Dell [Computer Corp.] has clearly a distribution model which is direct, and we were trying to mirror [that] with NEC Now. NEC Now has not been a success for us in the United States. So, we decided it was not the right thing to pursue NEC Now, which was really just to copy Dell, and I do not believe you can succeed just with a me-too strategy arriving several years later.

CRN: To what do you attribute the lack of success of NEC Now?

Couder: In the [United States], we tried to emulate Dell [through] a big-splash announcement and [spending a] huge [amount of] money [on] advertising, and on and on and on. In Europe, we've been doing it in a much more conservative fashion. First, we bought a company that was already doing that, so we bought the expertise. Second, we are growing the business in a profitable way. It's slow, but it's growing.

CRN: Did you send out the wrong message in your big-splash announcement? Could NEC Now have worked some other way in the United States?

Couder: When you're doing 80 percent of your business with the channel and do a big announcement saying, "Look, guys, I'm going to do it differently from now on," you just lose a large portion of your current business. I think some of our competitors are making a mistake right now, which is good for us now that we are back [in the channel]. I really plan to take advantage of that.

CRN: So the timing is opportunistic?
Couder: It is strategic, not opportunistic.......

(Excerpts only)
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