Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: The Phoenix who wrote (60524)	8/24/1998 3:15:00 PM
From: SecularBull	Read Replies (1) \| Respond to of 176387

Gary, your points make for a good argument on the face, but they lack any basis in the realities of this business. 1) The existing indirect marketers are hobbled by their existing distribution systems. This is why they haven't assimilated the direct model, and this is why they won't. Therefore, it is a barrier to entry. 2) Dell is not just a manufacturer of components. To make such a statement really does a disservice to your credibility. Are you trying to tell me that, with the exception of upper management, DELL employees are all either assembly line workers or salesmen? That's what you must be saying. Manufacturing is defined as the process of making wares by hand or by machinery especially when carried on systematically with division of labor. Sounds just like a DELL factory to me, yet you claim that DELL has no manufacturing capability. If DELL is just a assembler of parts and it's so easy to build the direct model, why doesn't Intel open up shop and compete with DELL, et al? If the direct model is so easy to assimilate as you claim, then why are Compaq and IBM (PC operations) having trouble breaking even, at the same time they're having trouble implementing the direct model? Why are all of the companies with the "better" business model all getting stomped? Interested in some answers, LoD