To: Frank Ellis Morris who wrote (105843 ) 3/1/1999 7:37:00 AM From: Mark Peterson CPA Read Replies (2) | Respond to
March 1, 1999 So who says DELL isn't competitive on price? continuing the aggressive-pricing strategy that has led to rapid gains in market share, Monday is announcing souped-up engineering workstations using two of the latest Intel Corp. microprocessors for nearly the same price that rivals are charging for single-microprocessor workstations.the pricing reflects only the company's lower costs from its lean inventory and lack of reseller fees compared with rivals. "I'm certain we've not advantaged on the Intel side." "We spend a lot of time working the price advantage," she said.less than two years after entering the PC-based workstation market, Dell's workstation sales have soared past those of International Business Machines Corp. and Compaq Computer to become the second largest seller after Hewlett-Packard. Dell now has 20% of the business and counts such prestigious customers as the National Aeronautics and Space Administration.The company's offering of factory-installed software has won praise from managers at NASA. "We saved probably in excess of several thousand hours" that would have been required to install software, says Ken Lehtonen, a senior manager at NASA Goddard, which recently bought 400 Dell workstations. The prospect of not having any channels to stuff allows Dell to map the shortest route to value for its customers. Worried about technology changes, broadband, etc? Dell will find a way to get them to the customer first.
