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

To: BGR who wrote (130594)	6/3/1999 2:57:00 PM
From: Chuzzlewit	Read Replies (4) \| Respond to of 176387

BGR, on this point I disagree. If you are a dominant player in a commodity-type business I think it is it is impossible to simultaneously hold margins and aggressively increase market share because the product is fungible. That mandates that price competition will continue to play a significant role in sales. That concern caused Dell to drop its gross margin by 90 basis points. To be sure, there are other factors as well, such as a superior distribution system, and superior customer service. But I think it is foolhardy to ignore the price-sensitivity of the PC business. I think Dell's challenge is to find new opportunities to extend its current "virtual integration" business model. These will be the drivers of growth and profitability. TTFN, CTC