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Technology Stocks : TECD - Tech Data

TECD 144.90

0.0%

Jun 30 5:00 PM EST

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To: Clay Harem who wrote (467)	2/28/1999 3:48:00 PM
From: Reseller	Read Replies (2) of 584

re: >>What it says to me is that CPQ cannot compete with the shipping and handling efficiency of TECD and the web sellers.<< Looking to jump in at this point, and having said that I have concerns about the current power struggle. CPQ has IMO rightly identified the critical issue, that of distribution dominance further it can have an adverse long term affect on their viability. The manufacturers cannot allow the destruction of hundreds of thousands of resellers and their support staffs. If that were to occur than the power of distribution will fall into the hands of a very few distributors while manufactures will be burdened with total support. This support while on the surface may not look like much is in fact huge. The other concern that I have about TECD and IM is their built to order programs. From what I'm able to discern these programs have been disasters yet we haven't heard from the companies just how bad these programs are affecting their bottom line and further I cannot understand how the Ingrams et,al can expect to assemble boxes equivalent to the economies that are required by the industry. Fact is that they have never been competitive with the street on component parts, the street is very efficient and changes on a dime while the channel moves too slow for the major wholesalers to react. With just one company like CPQ accounting for some 10 % of their sales the luxury of alienation isn't affordable, substitution of an IM or a TECD brand computer to the trade that is also aware of their support for the on-line ( wholesalers )-retailers will not happen IMO. Regards Reseller

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