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

To: kemble s. matter who wrote (160735)	9/15/2000 2:26:05 PM
From: D.J.Smyth	Respond to of 176388

"what they'll become"... not exactly sure what they'll become. do know where they're at and sales are not anemic (all the liars in the world can't change that) so they're inventing something else. doesn't matter what. it's working today.

To: kemble s. matter who wrote (160735)	9/17/2000 1:35:23 AM
From: calgal	Read Replies (1) \| Respond to of 176388

Hi Kemble! Have you seen this article? :)Leigh Let me give you an example of why this is worth knowing. Some investors may remember that Dell Computer (Nasdaq: DELL) -- famous for applying the direct-sales model to computers -- used to sell computers in outlets such as Wal-Mart (NYSE: WMT), Best Buy (NYSE: BBY), CompUSA, and Circuit City (NYSE: CC). In 1994, CEO Michael Dell decided to exit the retail channel -- a move widely criticized at the time, since industry-wide retail sales were growing 20% annually. Many people had doubts how far the direct model would carry Dell. Still, in 1994, Dell had been selling boxes in stores for about four years, and Michael Dell doubted the company was making any money in this venue. As he recounts in his book, Direct from Dell, he didn't think his rivals were making money either. Here's the point: Dell ran a return-on-investment analysis on the whole company, all its divisions, and found the retail channel wasn't profitable. He didn't think it ever would be, so he pulled out. That's smart strategy, especially with critics harping that a retail strategy was essential. It's interesting that this was the first time Dell ran an in-depth profitability analysis on all its business units. If a company as outstanding as Dell waited 10 years to measure its real returns, don't be so sure your favorite company really knows how it's making money and where it's losing out. fool.com