| There is a war shaping up that involves
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| | namely Hewlett Packard is the main
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| two giant companies facing off, and soon
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| | beneficiary.
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| there will be three. The war is between
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| | The consumer is now becoming aware that
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| Dell Computer, and Hewlett Packard for
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| | certain Sony manufactured notebook
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| supremacy in the personal computer world.
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| | batteries sold by Dell from April 2004,
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| The first battles have been fought, and
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| | until July 2006 are capable of exploding
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| clearly Dell has been the winner for
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| | and causing a fire. A Dell recall is now
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| years. The next battle seems to be
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| | in effect involving 4 million PC
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| shaping up as we write this, and Dell
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| | batteries on a world-wide basis, of which
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| seems to be victimizing itself with
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| | 2.7 million are in the United States.
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| recalls, and lackluster customer service
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| | Recently the Wall Street Journal carried
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| at best.
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| | an article about a laptop computer
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| For more than a decade Dell has eaten
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| | smoking on an airplane while on the
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| Hewlett Packard for lunch in the world of
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| | runway. The crew was able to open the
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| personal computers. Any analyst will tell
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| | door and throw the machine out onto a
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| you that Hewlett Packard makes a
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| | conveyer before it erupted into flames.
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| disproportionate share of its bottom line
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| | We now have over 4 million machines
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| from selling ink for their printers. They
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| | capable of this on a world-wide basis.
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| sell the printer probably at a lost just
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| | Several weeks ago, a Dell computer was
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| to get the ink resupply business. If you
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| | shown to be on first in a movie that
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| buy a HWP machine, they don't even
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| | circulated by the bloggers on the
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| include a printer cable in the box. They
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| | Internet. Dell tried to downplay the
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| would like to because it only cost a
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| | story unsuccessfully. Great management
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| dollar or two. What happens instead is
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| | teams confront their problems and deal
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| that stores like Best Buy, Circuit City,
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| | with them, that's not what's happening at
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| and others demand that the cable not be
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| | Dell.
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| included. These stores sell the cable as
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| | What is happening with Dell is that they
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| a separate item for $20 to $30 depending
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| | at the very least seem to be losing their
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| on length. Not a bad markup, pay a dollar
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| | edge which they have had since the
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| or two, and sell it for $30. The stores
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| | beginning of the PC revolution. There
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| make more money on the printer cable,
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| | comes a time in every company's growth
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| than they make on the printer.
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| | cycle when the company gets "Tired" for
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| Carly Fiorina, the former Chairwoman of
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| | want of a better word. PC's have become
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| Hewlett Packard developed a corporate
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| | as easy to build as toasters. There
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| strategy that was working. The Board
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| | really are no brand differences between
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| simply got tired of her. Today the
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| | competing companies, other than
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| current Board is implementing her
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| | advertising.
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| strategy and it's working.
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| | What Dell needs to do to get back in the
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| Dell meanwhile has had a tremendous fall
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| | game is re-energize itself. This is no
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| from grace. Dell really doesn't
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| | longer the company that was the subject
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| manufacture anything. They are an
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| | of several Harvard Business School case
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| assembler and a shipper. All
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| | studies. They must get their suppliers to
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| manufacturing is done overseas in an
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| | conform to what use to be very high
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| attempt to remain the low cost producer.
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| | standards, and pull their customer
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| Through the years, Dell was so superior
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| | service act together.
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| at this that some of their financial
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| | If former "also ran" Hewlett Packard can
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| metrics were meaningless. As an example,
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| | pull it off, then so can Dell. HPQ has
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| one of the things that analysts like to
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| | successfully merged giant Compaq Computer
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| know is how long it takes you to pay your
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| | into its operations. The post integration
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| bills. Dell turned the whole concept over
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| | savings have been achieved, and it now
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| on its head.
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| | appears that the merger was done
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| Let's look at an example. You order a
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| | seamlessly, and restructuring savings are
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| computer from Dell, and pay for it
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| | still being achieved.
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| immediately by credit card. They have
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| | What's coming next will be China's Lenovo
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| your cash. Dell's suppliers ship the
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| | which took possession of IBM personal
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| components for that machine before there
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| | computer division will be making its move
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| is any money due them by Dell. This means
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| | against both Dell, and Hewlett Packard.
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| Dell gets your cash, and may not have to
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| | Both of the American based companies have
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| spend that cash for months. The usable
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| | heavy manufacturing done in China. Lenovo
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| float amounts to billions of dollars. So
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| | will do whatever it has to do in an
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| why has Dell fallen from grace. It comes
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| | attempt to garner market share for its
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| down to this. When you play by the edge
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| | personal computer manufacturing segment.
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| of the table, sometimes you fall off.
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| | Over the next two years there will be a 3
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| Dell's customer telephone service centers
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| | way war. The argument will be since Dell
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| in India are failing the American
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| | and HPQ are selling China manufactured
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| consumer miserably. They may speak
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| | products already, why not buy China
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| English, but they do not understand our
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| | direct. It will be interesting to see how
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| culture, and they do not get the job
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| | the winners sort themselves out, what
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| done, as far as consumer satisfaction is
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| | will be Wal-Mart's roll, since 70% of all
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| concerned. In the end, consumer
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| | products sold by the giant chain come
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| satisfaction is everything. People vote
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| | from China. Wal-Mart really is China's
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| with their feet and the consumer is
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| | distribution arm.
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| voting to buy somebody else's machines,
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