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Technology Stocks : Dell Technologies Inc.
DELL 123.46+0.8%3:18 PM EST
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To: D. Swiss who wrote (122726)5/6/1999 1:08:00 PM
From: Chuzzlewit  Read Replies (2) of 176387
 
Actually, I think that such an acquisition makes a great deal of sense. I have two reasons for this.

First, GTW is firmly entrenched in the retail market. It's country store concept is a way to allow consumers to touch and feel before they buy. It gives them the hand-holding they need.

Second, it removes a potential direct bridge from the landscape. In other words, it would be preemptive strike against Compaq. I have argued that the only way a company like Compaq can rapidly bridge the gap to BTO and direct sales is to buy a company in that business. That allows the coexistence of brands which could eliminate their channel rebellion. Simply put, the GTW brand becomes the direct, BTO machine while the Compaq brand retains its channel image.

TTFN,
CTC
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