The Smartest Price War Ever
from the follow-the-logic dept
IBM's Lou Gerstner has apparently said that Dell's attempt at starting a price war was very stupid. However, Bill Gurley explains why Dell's price war is a really smart move for Dell. Basically, the idea is that Dell's business is much more efficient, so it can afford to depress prices the longest - forcing everyone else out of business. Of course, I'm still not even convinced that the PC business really is a commodity business - since it is possible to differentiate yourself through quality and customer service. For example, despite being a loyal Dell customer for nearly 10 years, I would certainly pay extra to avoid ever doing business with the company again after the way they treated me when the last laptop I bought from them broke.
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um, yeah, and Apple is still alive...
But in any case, this is all good news for PC consumers.
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For example, despite being a loyal Dell customer for nearly 10 years, I would certainly pay extra to avoid ever doing business with the company again after the way they treated me when the last laptop I bought from them broke
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