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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: gbh who wrote (57152)	4/23/1999 1:23:00 PM
From: BGR	Read Replies (1) \| Respond to of 132070

Gary, Excellent response and summary of the comparative landscape! -BGR.

To: gbh who wrote (57152)	4/23/1999 3:02:00 PM
From: Murrey Walker	Read Replies (1) \| Respond to of 132070

Where is your response to Gary, Mike? Looks like he's hitting some nails with the sweet spot of his ten pound hammer!

To: gbh who wrote (57152)	4/24/1999 2:28:00 PM
From: Knighty Tin	Read Replies (2) \| Respond to of 132070

Gary, Your points: 1. MUEI is third tier so it doesn't count. E-Machines is third tier in the channel and it counts. Since E-Machines is by far the fastest growing pc co., I would say that looking at the models does not support the tiny share of the direct sellers eating the lunch of the main stream participants. The brand name channel players continue to gain share, as do the smaller direct players. With the exception of PB in the channel and MUEI direct. 2. Gateway and Dell are more different than alike. One is consumer and one is corporate and you can't really lump them together. 3. Gary, you can't have it both ways. Gateway has 166 stores. The direct game is no longer direct for them. It is catalogue showroom now. Dell has tried to get into the channel, as they realize the weaknesses of the direct system alone for long term growth. Nobody is abandoning either model. Everyone is trying to do everything. Of course the stores are marketing tools. So is CompUSA. 4. Rolls Royce is very price competitive with auto buyers who demand a bar in the backseat. So what? That isn't where the market went and why RR went bankrupt. Dell and Gateway may be price competitive for the same features, but I contend that the bar in the back seat is not the mass market and that they cannot survive there alone. Once again, recent moves by Gateway and Dell shows that, belatedly, they recognize this fact. If they can't make money on the low end, and they can't, they'd better learn how. The high end will be for the few only. They are the victims of the learning curve. 5. I agree that you can't compare Dell and Gateway with CHS. They haven't been caught yet. Best, MB