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: Lizzie Tudor who wrote (88394)	1/10/1999 1:27:00 PM
From: DellFan	Respond to of 176387

OT re: AMZN and barriers to entry Your point is well made - there are no guarantees that Walmart.com could pull it off. And I agree that, like others on this thread, I don't think that CPQ could duplicate Dell's success. Dell's investment in hard assets (much of it specialized) is approaching $1 billion (25 times AMZN's) and their R&D is chugging along at $300 million annually ( 8-10 times AMZN). That represents a much higher threshhold for entry to Dell's business. But the one asset that Dell has that can't be duplicated at any cost is MD (at least until human cloning is achieved). Perhaps AMZN has a similarly prized individual. Now that would make a difference! Your I-pal Christopher

To: Lizzie Tudor who wrote (88394)	1/10/1999 1:41:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Michelle, do you recall a few weeks ago my characterization of your observation about the necessity of comoditiztion of the product to make e-commerce profitable as a brilliant insight? I still believe that. It was one of those rare moments that provided me with an epiphany! And I still believe that. But companies like AMZN violate those requirements which you so astutely set down. Before you get so excited about the mechanics of inventory flow, I think it would be wise to examine the number of different SKUs in the inventory. IMO Dellfan is absolutely right. We are witnessing a herd mentality, and some day soon, like those roadrunner cartoons, Wiley Coyote will look down and realize that he has run off the end of the cliff. Only then will he begin to fall. TTFN, CTC