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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: John Biddle who wrote (16451)	2/3/1998 6:48:00 PM
From: StockMan	Read Replies (2) \| Respond to of 97611

John, Re -- While I agree that my two-brands approach does indeed waste resources in each channel, that is the tradeoff to maximize overall sales and profits. Right in wasting resources decreases efficiency and indirectly reduces profitablily. In using 2 brands (DEC had 1.3% marketshare), causes confusion among the customers. In use 2 diverse lines for essentially the same PC's, does not allow for economies of scale and affects profitabiliy. Compaq with its BTO model believes it has negated all of the advantages of direct sales. Once again wait for CPQ to announce its plans. <end of discussion> Stockman