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

To: D.J.Smyth who wrote (164170)	2/18/2001 12:57:38 AM
From: Sr K	Read Replies (2) \| Respond to of 176387

This is the bullish argument for Dell: Lester C. Thurow: Does the "E" in E-Business Stand for "Exit"? "To date, no major company has been gutsy enough to take the short-term losses in order to shift from traditional channels to selling online -- and perhaps they shouldn't. Because losses will come early and gains much later, using discounted net present values, it is possible -- perhaps likely -- that the current discounted net present value of the profit stream that leads to extinction (i.e., sticking with the old sales channel) will be greater than using the current discounted net present value of the profit stream that leads to long-run survival (i.e., moving to the new Internet sales channel). The conventionally correct economic answer to this problem is as simple and straightforward as it is brutal: Choose the old sales channel that leads to economic suicide. The “right” strategy is, in fact, an exit strategy." Full article at: mitsloan.mit.edu MIT Sloan Management Review Reprint 42211; Winter 2001, Volume 42, Number 2, p. 112 Permissions Prices for Permissions Number of Copies 1-4 copies NO CHARGE FOR PERSONAL USE