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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 233.22+1.8%Nov 28 9:30 AM EST
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To: GST who wrote (38579)2/7/1999 2:49:00 PM
From: BGR  Read Replies (2) of 164684
 
GST,

Dell doesn't manufacture the terminal, nor the printers that it sells. And they make a profit doing so. Imagine for a second what would happen if DELL were to start selling CPUs from it's Web site when CPU prices are continually falling. (Perhaps memory would be a better example). The local electronic superstore has bought CPUs in bulk 3 weeks back and prices have already dropped by 5% (say). DELL carries no inventory and orders and resells CPUs within a day (say). Who has the price advantage here?

DELL's BTO model is only part of the reason for their success. Watch their Supply Chain Management implementation and inventory turnover rate as well.

Now for AMZN this model may not apply due to diversity in books ordered.

-Apratim.
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