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

To: Chuzzlewit who wrote (105423)	2/26/1999 3:46:00 PM
From: Frank E W	Respond to of 176387

Shortages.... Say im a manufacturer of widgets... company A buys 10 every month.. company B buys 8 a month and 20 in november to stuff his Channel before Christmas.. company C only comes to me when he cant get widgets from my competitor. in a shortage who would you service first? now throw in the fact that company A is growing 30% faster than B ? please excuse my typing :))

To: Chuzzlewit who wrote (105423)	2/26/1999 3:49:00 PM
From: stock bull	Respond to of 176387

Chuzz, great response to Jock's posting. Re:<<...I need to think about the issue of shortages, so let me put that answer off for awhile,...>> In the event of shortages in the industry, it has been the practice of the company supplying the component to put all their customers on allocation. So, the shortage affects all the customers. In the short term, those customers that carried inventories have a buffer for the period of time that is needed to burn off this inventory. Therefore, a company like Dell may be hurt in the short-term. Stock Bull

To: Chuzzlewit who wrote (105423)	2/26/1999 3:50:00 PM
From: HDC	Read Replies (3) \| Respond to of 176387

CTC, Michael covers the issue of component shortages in the Harvard Business Review article on "Virtual Integration". This issue is addressed when vendors are selected. Dell has narrowed its vendor base by over half during the last couple of years or so. The vendors which were chosen make commitments to Dell regarding supply during times of shortages. They do this because of the huge potential growth they will experience having Dell as a customer. Best, Duncan