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Re: Branding online ... what's the point (Overture editorial guidelines)

From: Damon Kirschbaum <damon_at_damonkirschbaum.com>
Date: Mon 03 Mar 2003 11:07:45 -0600

on 2/26/03 5:52 PM, Marco Janeczek at info_at_mazata.com wrote:

>> Tell that to Wal-Mart. You have just glibly dismissed Wal-Mart,
>
> Actually Wal-mart sells BRANDED products cheap, because they pick them
> up in bulk. Simple.

I agree that their strategy is to buy and sell cheap. If anyone doubts that
Wal-Mart's central strategy is to be the lowest cost provider of the
products that they sell, they should read this article:

<http://www.fortune.com/fortune/mostadmired/articles/0,15114,423053,00.html>

Fortune magazine recently named Wal-Mart the most admired company.

> and DELL laptops are not cheap.

Dell was not a good example. While they are definitely the lowest cost (to
them) supplier of computers, I do not know whether they are among the
cheapest computers, and they do not seem to position themselves as selling
"cheap" computers. (Do they? I use a Mac.) I assume that they are at least
highly competitive with the other major computer companies. That way they
leverage their low cost structure to clobber the competition. They have done
a number on Gateway.

Regards,

/s/ Damon Kirschbaum

----------------------------------------------------------------------
Damon Kirschbaum's Investment Advisory Service
<http://www.damonkirschbaum.com/>
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Received on Mon Mar 03 2003 - 11:07:45 CST


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