Time to bail out Dell, here is why:
DELL was a dominant force in mail-order PC industry while other
industry heavy weights were still pondering the how-to and
still wondering whether mail-order's legit or not.
And there was no Internet and E-COMMERCE insight!
It was then.
Now, every PC heavy weight has mail-order established, every
PC heavy weight has an efficient Web Site to graphically
describe their product and also allow you to configure your
PC built to order, so the biggest advantage of DELL has been
damaged.
Now, loads of e-commerce sites (not PC heavy weights) sell PC
on line as well, such as COOL, WMT, SEARs, BESTBUY,...
more DELL's advantage has been taken away.
PC's price has been lower every month, so the cost is higher but
the margin is lower for DELL.
The 50% growth rate should not be seen any more for DELL, the
battle zone has been defined, everyone is equal, time to
buy more AOL of the new industry using the old money from DELL...
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