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

To: Chuzzlewit who wrote (101967)	2/17/1999 2:20:00 PM
From: Jim McMannis	Respond to of 176387

Looks like DELL is going bobbing for apples some time before the close. AHHHH OOOOO GAAAAH. Jim

To: Chuzzlewit who wrote (101967)	2/17/1999 2:40:00 PM
From: JRI	Read Replies (1) \| Respond to of 176387

Chuzz- A few points... Agreed that Dell will do well selling "commodities".....I like the idea of selling software and periphrials via the Website....logical extention...not too far from the core......I don't know what internal projections of rev/earnings growth would be in this segment, but it could be a very lucretive addition indeed (with little fixed cost)....It appears that the Net is the great commoditizer...who else (would benefit the most profitably but) the leanest, meanest PC company is this space... Briefly read some of an editorial about Amazon in Red Herring written by Perkins (of (sp?) Caufield, Perkins, etc...VC firm for Amazon and others)....One of Perkins' points was that E-commerce was where its at on the Net...that all destination sites are trying to get there...and that Amazon's real value is in its great information gathering ability and (personalized) data about its customers.... and its ability to market (other) items to their customers as a result (books, in other words, is not the answer)...that Amazon is the (perhaps) the next generation portal... Well, applying that analogy to Dell, I feel certain Dell would be among the leaders in knowing their customers inside/out...this will position them well in the battle for Web mindshare.... So, if Perkins theory is right....if anyone is going to be among/join the giants of the Net, it will be companies with profiles like Amazon...and I would argue, Dell compares well here....(without getting into what this future might mean in revs./earnings) I think an important point that I haven't seen raised....we all were concerned with how Dell could continue at a most-amazing hyper-rate to hire workers..The report noted that Dell hs had to hire significantly less numbers last quarter due to the (growing use) of the Web....And, to think, use of the web is only in its infancy...Importantly, businesses are using it more and more now....wow, what a powerful driver (driving down costs, saving time) for Dell while the competition maintain the indirect channel (and its costs)... Also, I don't remember the exact statistic, but MD says Dell saves $ 30-50 for every web site visit (vs. a call)...Also, a nice (down) driver in costs... At some point, at the rate of workers Dell was hiring, quality and/or growth probably would have taken a hit...The (rapid adoption of the Web) makes this scenario (much?) less likely... Also, with the doubling of manufacturing capacity this past year, I gotta believe that (with slower manufacturing facility growth this year) this will allow Dell to focus even more on extending the direct model, driving further operational effeciencies, and even improve great quality a notch (up), etc....I gotta believe that some attention was divided (from execution) with all the building distractions...

To: Chuzzlewit who wrote (101967)	2/20/1999 12:42:00 AM
From: WeisbrichA	Read Replies (4) \| Respond to of 176387

CTC, RE: Application of an Internet Direct Sale Model can, IMO, become a core competency in itself IMO, there are certain business modalities which can be extrapolated from one marketing environment into another similar environment. Core competency, or the mastery of the basic functions which make an enterprise run efficiently i.e. profitability, in any area such as manufacturing or marketing or brokering or operating an Airline should be able to be the basis for a similar ventures. Dell is a marketing company, not an assembly company, as someone said in earlier post. Assembly is merely a process, no matter of what level of efficiency, which contributes to the delivery of a product to the end user.. the customer. Dell delivers customer satisfaction on product(s) in return for profits. They could fabricate that product themselves, sub it out, buy it branded, or buy it whitebox. What difference does it make as long as Dell can control the quality of the product. Dell can sell any product within the E-commerce structure just as Sears sold products via their catalogue many years ago. That is their core competency. Let me expand that and say that Dell's core competency already that of an E-Commerce Marketing organization. The infrastructure is already in place… the internet, ordering and delivery systems, customer support, accounting support, etc. The question remains only.. "What market area should Dell be in which can capitalize on its existing customer base"? And what new areas can expand the customer base? Well, I suppose they could try to sell phone systems… not to far afield. Perhaps music systems. Perhaps microwave ovens. With the proper naming of wholly owned subs, they could be in a lot more distant areas than the ones I toyed with. Dell could even become what the Sears catalogue was to the US in the first half of this century…. An Internet Super Store (ISS). (acronym by Rich). Sears was the catalogue super store. Walmart, Nordstrom, Macys and the like may face really stiff competition when the web appliance and credit card issues settle out more. Dell the new ISS! I like it. RW