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

To: jim kelley who wrote (145357)	10/20/1999 2:32:00 PM
From: rudedog	Respond to of 176387

jim - There are several problems with ordering large batches of the same components you're right for most of the industry, and for all of the market DELL has traditionally played in, but there has been a lot more use of less than cutting edge technology in the consumer business, especially in the low end. I think DELL could go one of two ways here - they could try and set a new standard using their existing BTO model (sell up), or they can change the way they do the build. The third choice, take a margin hit, is pretty unappetizing.

To: jim kelley who wrote (145357)	10/20/1999 3:32:00 PM
From: Mike Van Winkle	Read Replies (2) \| Respond to of 176387

Jim re: Build to order is intrinsically a more efficient process and does not require the large inventory writedowns that accompany batch manufacturing.<<< It is difficult for batch thinkers to change to process thinking. Dell's model fits the real world where change in technology and change in customer demands will always be unpredictable. Batch by its very nature is static. Retailers are always having sales to clear out their inventory. Even Ford is working to move to Dell's model. As time goes on and more businesses move towards the Dell model, even business cycles will be a memory (sorry bears). Mike