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

To: rudedog who wrote (36054)	3/30/1998 10:18:00 AM
From: Venkie	Respond to of 176387

Maybe they had the room to cut and waited for the right time..Hmmmm

To: rudedog who wrote (36054)	3/30/1998 10:27:00 AM
From: MichaelW	Read Replies (1) \| Respond to of 176387

You! perceive this as bad news.

To: rudedog who wrote (36054)	3/30/1998 10:51:00 AM
From: Mohan Marette	Respond to of 176387

Well, it depends on what kind of price cuts you are talking about. One is out of sheer necessity to clear the channels and to dump outdated products and this normally is the result of less than superb planning and strategy.The companies in this example do not have a choice in the matter as they are forced to cut prices as there exists no other alternative. Then there is another kind that the Japanese are famous for which is very deliberate and intended to achieve a specific objective,ie to gain a foot hold in the market place and establish market presence so that they can gain market share some time in the future. You know the story here don't you and how successful they have become particularly in consumer products. Another kind is the result of a well thought out strategic marketing plan which is what DELL is employing here. They are doing it without jeopardizing the profitability, nor are they forced to do it as in the case of the first example.I believe they have seen an opportunity here to take advantage of the poor strategic decisions made by the competitors and thereby a chance to increase their market share in Workstations without causing an erosion in the overall health of the company. This decision might even help propel them to a step closer to the 2nd position from the current 3rd position in the Workstation business.