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

To: jim kelley who wrote (48823)	6/23/1998 9:22:00 PM
From: kemble s. matter	Read Replies (1) \| Respond to of 176387

Jim, Hi!!! << Geoff, I agree with your assessment. It looks like CPQ overbuilt in every channel including retail. The purpose is to grab market share. HWP and IBM took similar approaches trying to capitalize on their rivals' weaknesses. The result is that they shot themselves in their collective feet. DELL was barely affected by their zealous efforts. It is easy to understand the implications of stuffing retail stores with PC's. There is limited shelf space and the more product you put into a retail store the less shelf space will be available for your rivals products. It is a market share grabbing technique. The more display kiosk space you take the less that will be available for your rivals. For the corporate channels this may work in a similar way. The Lehman Brothers report for May showed 73 days of inventory in that Vanstar channel. Now that is a lot of inventory. A lot of effort has been made to obfuscate the actual situation in the channel. If CPQ really wanted to it could clear the whole matter up by stating the levels of inventory in the different channels. The BTO/JIT model does not suffer from this obfuscation.>>> And, in your opinion is this one of the major reasons why Dell is running at present? Best, Kemble