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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (49850)	2/17/1999 3:16:00 AM
From: greg nus	Respond to of 1578106

Jim, that would indicate the selling through the retail channel may has been underestimated as a model tool for distribution. you may have found a chink in Dells armor. Dells vonerability appears to be by strictly following the dell model, build only to order. You may not get the order if you have to wait for the phone to ring, so then you have to question the power of Dell's marketing. Second once you get the order your limited to Dell production capacity..Compaq for example starts building up inventory in Aug to blow out during christmas. thrid since it takes dell a week to deliver a system Dell misses out on the last week of prime time sales, as everone wants the box under the tree on christmas. Thrid Dell never has anything on sale. So by definition they get out marketed. once the stock stops falling we can calculate the cost of the problem I'm sure its in billions of $$. and we will have to see of MD learns anything from this mistake. I would think it would make Compaq stock goes up a bunch. I guess md misscalculated the risk of moving too far from the traditional model. And its clear that unless he adapts it will happen again next year. any thoughts