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Technology Stocks : Compaq

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To: Key West who wrote (59864)4/26/1999 9:41:00 AM
From: fooledalot  Read Replies (2) of 97611
 
gene,

As I have been reading everyone's wisdom over who is better than who etc. I have been somewhat puzzled by some of the discussions relative to the absolutely "correct" distribution strategy for the computer business. When everyone (none of whom have likely run a company, or significant marketing group, obviously) continually claims that CPQ should go to a pure direct model, citing all of the wonderful growth that DELL has accomplished, I become somewhat puzzled.

Granted, DELL has done an excellent job growing their business niche through their direct means, but your words tell quite a bit, "....when your direct model works best, when you only have 8% of global market...."

If a purely direct model is sooooo good, why does DELL only have 8% of the global market?? Why would the world's leader be satisfied with reducing their worldwide market share to 8%?

Just something I have been curious about for some time.

Regards,

f
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