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

To: Chuzzlewit who wrote (39978)	5/2/1998 6:15:00 AM
From: Sig	Read Replies (2) \| Respond to of 176387

Am not sure whether this has been posted, is an overall look at Dell wgss.com One exerpt: COMPANY STRATEGY Dell has 4 major legs to its strategy. The first is to sell computers directly to its customers. With the exception of its superstore experiment, Dell has never deviated from this strategy. While consumers can easily buy Dell, over 90% of its revenue comes from business, government and education organizations. To focus on this customer set,Dell has hired several hundred field account representatives to provide face-to-face sales contact with its customers. By focusing on direct sales to organizations, Dell has avoided two areas of business its key competitor, Compaq, is in, both of which are harmful to margins. They are: Sales through dealers, and, selling low priced systems to consumers. 1.Dealer sales channel. This is Compaq's staple distribution channel. However, this channel requires margins of at least 10% to survive, and in many cases does not provide an acceptable level of service to corporate accounts. Dell keeps the extra margin for itself, and uses it to provide a consistently high level of service to its customers. 2.Consumer sales represent approx 27% of PCs sold in the US, and computer companies have pursued these sales aggressively. However, none of the companies selling to consumers are making money doing so, and it is not clear that they will. Packard Bell became the 3rd largest computer company in the US by selling to consumers, but never turned a profit, and Compaq , IBM and HP are all struggling to achieve profits, even as they introduce lower and lower priced sytems. SES