EMC How high can it go? Message Board

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Technology Stocks : EMC How high can it go?

EMC 29.05

0.0%

Sep 15 5:00 PM EST

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To: Tony Viola who wrote (5307)	4/6/1999 11:28:00 PM
From: stockman_scott	Read Replies (1) of 17183

Tony: DELL can still be "a serious company" and not spend 10% of sales on R&D. It is interesting that they have the highest ROIC of any large cap tech company. DELL uses capital more efficiently and delivers a better return to shareholders. IMHO, DELL collaborates with suppliers very effectively and outsources alot of its R&D. They only innovate in the areas where they can add great value. I have heard Michael Dell discuss this and I agree with his approach. Harvard Business School has written quite an interesting case study on DELL's virtual integration business model. There are a lot of elements to it. DELL's Direct Model cannot be easily duplicated -- otherwise it would have already happened. Most competitors don't have the right culture and have serious channel conflict. DELL is working to sell over 50% of their products online by the end of the year 2000. The internet is transforming the way they market, sell, service and retain customers. Many have doubted DELL's ability to be a player in new markets. Look how quickly they have gained mkt. share in the workstation and server space. They have ramped up in a hurry and now are one of the top 3 global players. DELL concentrates its efforts with laser- like focus. I don't think you or EMC should underestimate their capabilities in the storage market. I have heard Michael say that they intend to be a MAJOR player. Soon enough they will start to put pressure on SUNW, CPQ, EMC and others that sell expensive storage products. DELL knows how to compete on cost, quality and service. Their record speaks for itself. Just my views. Best Regards, Scott

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