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

To: ratan lal who wrote (34404)	3/15/1998 9:08:00 AM
From: Mazman	Respond to of 176387

A few comments: 1. <no proprietary product> The Dell reputation for quality and service is the "proprietary" buy for most customers. Besides, their no-inventory approach allows Dell to include the lastest proprietary technology from Intel and other suppliers sooner than other competitors. 2. <easy to emulate JIT invetory concept> Read the latest story on Dell in Harvard Business Review and see just how complex and involved Dell's JIT or build-to-order approach is. Cutting its inventory turns to 11 days or so requires an exceptional level of virtual intergration with both suppliers and customers. No easy feat. 3. <prices dropping, sales not increasing to make up for low prices> Dell's BTO approach enables is to maintain higher margins than competitors, even in the face of price cuts. Corporate America (and Europe/Asia) which are Dell's biggest customers (90%) are spending money on info tech at record levels to stay competitive. Dell likely to rapidly boost its share of workstation/server market share (top margin sector) as CPQ struggles through Digital acquisition. Mazman

To: ratan lal who wrote (34404)	3/15/1998 12:04:00 PM
From: Jack T. Pearson	Read Replies (2) \| Respond to of 176387

ratan lal, I'll give you credit for 1 out of 3. "1. No proprietary product" Right "2. Easy to emulate JIT inventory concept. Easy to emulate Direct sales to end user" Wrong "3. Prices dropping sales not increasing to make up for low prices." Wrong If you were correct on 2 & 3, Dell's sales and earnings would not be growing at 50%+ per year. Margins are not declining either.