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

To: edamo who wrote (165502)	5/23/2001 1:46:59 PM
From: D.J.Smyth	Read Replies (2) \| Respond to of 176387

They admit it. They are dealing mostly, thus far, in a profitable commodity. Dell's strategy is no Sennacherib or Hitler strategy. Sennacherib conquered one city at a time by stationing his army around the entrance to the cities. Clear lines of supply to the cities were known. Supplies were cut off to the cities. What supplies arrived were purchased by Sennacherib's army to feed his conquests. No supplies could enter the city; yet Sennacherib was well supplied from outside the city. Sennacherib controlled 60% of the known old world at the time. Hitler likewise. Dell controls but 14% of the world market, hardly a comparison with 86% yet to go. Dell's systems are in the hands of but 2.4% of the world's population. Only 97.6% to go. So, you're possibly saying that HWP and CPQ and the 2nd and 3rd tier movers have established impregnable niches; mostly long term relationships based on efficient supply and service at an equitable price. An apparent closed system. The lynch pin being price. It seems reasonable that the lynch pin is price for some. Dell has developed it's relationships to deliver equal supply and service (improved service in some instances) relative to a lower, yet profitable price where they can. It's not about starving out the enemy. It's about delivering margins that remain profitable (where they can) in the face of economic downturn. A few that starve relative to their lynch pin being pulled and their system falling apart does not qualify as an all out assualt or war. Dell's comments about a few falling apart does not qualify as "warring words". The media has played Dell's words as a warring words. This is not war, it's methodology. What is needed is a turn around in the economy, that's all. In the meantime, Dell applies it's methodology where it profitably can. Dell is attacking only those areas that provide ROIC, per Dell. According to them it's the implementation of improved strategy, not the selling of great ideas. So, do we listen to the media that Dell is at war, or do we listen to MDell in that Dell is applying its methodology to increasing segments?