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Dell Computer Corporation (DELL) Message Board

  • dell_holder dell_holder Feb 3, 2007 7:50 PM Flag

    Dell 2.0

    It will be an interesting next 6 months. I expect to see Dell return to the Sam's Clubs and Wal-Mart in an effort to boost volumes and get their face out on the market again. I've always how effective the kiosk at the mall" sales for retail has impacted the bottom line. I've always seen that as a schlock product type of presence and have NEVER bought anything from those places. But some people do buy that way. I'd be in negotiations to consign hardware to the big-box stores so that I had the impulse buy presence needed to move product. Margins may be higher with on-line sales, but without volume, margin doesn't offset overhead.

    And as a motivator, taking a $1 a year and NO options of any kind regardless of performance is at least a symbolic sacrifice in the face of telling staff they just got their bonuses whacked.

    If they play this right they could make good for a lot of people in two years. Play it wrong and Dell may be defunct in three. They would join a long list of companies "too big to fail" that did.

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    • > And as a motivator, taking a $1 a year and NO options of
      > any kind regardless of performance is at least a symbolic
      > sacrifice in the face of telling staff they just got
      > their bonuses whacked.

      Come on. Mikey has siphoned of 10x times the company's book value into his own pockets. Do you think anybody is going to say "Oh... He is taking one for the team. Lets be motivated."

      > If they play this right they could make good for a lot of
      > people in two years. Play it wrong and Dell may be
      > defunct in three. They would join a long list of
      > companies "too big to fail" that did.

      I agree, but only to a point. I don't think there is anything they can do to fix the problem. They only have access to 1/2 the customer base with the direct model and it is losing its effectiveness as prices continue to decline. They have squeezed the suppliers to the point where there is nothing left and many are saying they won't come down in price and want to be paid net-30.

      The employees don't care any more. It is a job and they will do what it takes to look like they are doing their job. But it is a lot of pretending.

      They are in deep, deep trouble. But the DELLusional 'investors' here just can't see the forest for the trees. That is fine. Wall Street is going to spank them hard.

 
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