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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: Lizzie Tudor who wrote (38599)	2/7/1999 9:27:00 PM
From: GST	Read Replies (1) of 164684

Quite a few things changed at about that time. One of the most important was that Dell himself began to grow up as a manager. It was also around that time that Dell started to build a more competent management team. Dell also got into trouble by speculating on currencies -- from which they actually made a lot of money for a while. The problem was, nobody wanted to invest in a box maker with that kind of arbitrage income and a high risk profile. They traded at around ten times earnings and nobody could see how they could maintain their margins given the competition. Did they need to upgrade their material flow system? Sure. But if they were not in the build-to- order model, there would be nothing to improve upon -- that is the model, was the model and will be the model -- has been since day one. As for no inventory, they need to have a few things on hand to do their work (also turning over as rapidly as possible) -- they just don't have finished product in inventory. There is substantial value added in this model because each order can be customized to user requirements.

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