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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: arthur pritchard who wrote (132823)	6/15/1999 1:56:00 PM
From: edamo	Read Replies (1) \| Respond to of 176387

garrett...knocking out dell...never would say such a thing.. only concern i voice is that the dell model is based on a existing proven post war japanese business model, tweaked a bit for the industry and modified greatly with innovative sales and marketing. with an increase in market share comes an ever increasing delicate balance of strategic alliances which begin to approach a zero tolerance error factor. at some point you as the customer assume a subordinate position to your vendors/alliance partners. i believe as a long term stockholder in dell that they have no equal in their niche insofar as execution in the aforementioned areas of bto/jit production model and internet direct sales channel. case in point, if grove/barrett decide they no longer find cpu profitable, and they have reached a strategic inflection point as they did with memory, and develops fault in their supply to dell, as cpu are now secondary...what happens to dell...still make great computers, but may lose a bit in the bto model as far as turnaround. i've operated a bto model for over twenty years in conjunction with the major jpns heavy industries...all is fine as long as the demand exists, when an economy slows it is difficult to maintain a smooth flow of material as margins of vendors much narrower than in an inventory based model, it is made up for in volume and turn around... that is why i am curious of the "future" to take dell "out of the box"(whatever that means) and to add revenue and higher profit that is not dependent on the bto model. one only has to look to the east to see how the originator of the model collapsed when bad economic times occurred. thanks for listening...ed a.