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

To: SecularBull who wrote (60551)	8/24/1998 3:36:00 PM
From: The Phoenix	Read Replies (1) \| Respond to of 176387

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. True, they are inhibited by their style of doing business, but make no mistake, this isn't a barrier to entry. This is an ineffective competitve business practice...at least when it comes to competing against DELL 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? Yep, that's what I'm saying. And they do a damn good job of slapping together those PCB's and Power supplies. 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? Hmmm, perhaps because their are in the component business. Here's a question for you. If the PC market showed so much promise don't you think it would be easier for Intel to build PC's rather than networking equipment? They are building networking equipment because the margins and the growth in that space is superior. Anyway, that's a different topic. I'd like to stay focused on the PC market and competition in that space. 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? Two words... Existing Relationships. However, if these existing relationships continue to fail to allow HP, CPQ, and IBM to maintain their market positions then one or more of them will change the way they do business... OG