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.
Comments on “The Smartest Price War Ever”
um, yeah, and Apple is still alive...
While I know people will disagree, I’ll say it anyway… Apple has consistently higher prices for their laptops, and they still sell well. I’m not sure what share of the laptop market Powerbooks are, but I don’t think Dell is going to run that many major players out of the laptop/desktop business. Micron, yes. Gateway, maybe. Apple, no. IBM, no. Sony, no.
But in any case, this is all good news for PC consumers.
No Subject Given
nice! I’m sure you are on their good side now.
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
Re: No Subject Given
They should be pretty clear on how I feel about them based on the conversations/emails/letters that have been sent to them.