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

To: kemble s. matter who wrote (26524)	12/30/1997 7:15:00 PM
From: pwrmstr	Read Replies (1) \| Respond to of 176387

Kemble, I recently left CSC Index, the firm quoted in the article. Working there is how I first became aware of Dell's incredible operating model. While many posters like Jim raise legitimate concerns about the commoditization of the PC industry, I think thsi article effectively highlights how Dell has decommoditized the PC industry by establishing strong customer links that lower the TOTAL PROCUREMENT COST of PCs. Certainly, Boeing is better off taking its key procurement personnel and focusing on securing critical parts for its airplanes than it is using these folks to manually track POs for PCs. Web-based, direct sales, mass customization is the way of the future, but the learning curve is huge. Similarly, the switching costs to customers are huge as well once they have are conducting business on line with Dell and are standardized on Dell products as many of my clients in consulting were. Don't forget Compaq grew so quickly by changing the rules of the game on IBM. Now Dell has changed the rules on Compaq and others. I for one don't see anyone about to change the rules on Dell. Rather, everyone is trying to follow the rules that Dell keeps changing.