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

To: jhg_in_kc who wrote (54652)	7/28/1998 11:55:00 AM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

jhg, a distribution company is one that distributes product. Traditionally, a distribution company is a channel intermediate or a wholesaler. If you think in those terms you can see that acts in that capacity for true technology companies like Intel and Western Digital. The point is that Dell has created an efficient system of selling an array of technologically advanced products directly to a variety of customers without reliance on resellers. The importance of managers thinking in this way is that it adds significant dimensions to business prospects. You can avoid the stagnant thinking that frequently accompanies being in the same business for an extended period of time. Now a more focused point that should not be overlooked. I believe that the major protection that Dell has from its competitors is the simultaneous JIT manufacturing system, BTO and direct sales. These components comprise what I've called the chasm. But the critical importance of GTW should be factored in. I've argued that the presence of the chasm protects Dell because there are simply too many hurdles for established businesses to overcome before it can emulate Dell. However, GTW is a threat because it could be purchased by another company and used as a separately branded manufacturer expressly for the purpose of challenging Dell without jeopardizing the parent's market position. In other words, GTW could be used as an efficient tool to breach the chasm. Any thoughts? TTFN, CTC