Business Services Industry
"Direct" is not always a threat.(Brief Article)
Industrial Distribution, September, 2000 by Manthey, David J.
I recently completed a whirlwind tour of six publicly traded industrial distribution companies. "Disintermediation" continues to be a recurring theme heard from their investors. I am surprised that the concept continues to get as much play as it does, but some investors continue to raise concerns that distributors will be squeezed out as manufacturers sell directly to customers -- a.k.a.
"the Dell model Distributors should not feel insecure about their level of "directness" relative to Dell. In fact, you may be surprised to learn that even Dell is not always so direct. Due to customer preference, many Dell PCs are sold through traditional value-added resellers that add another "touch" to the process. In fact, some industry observers estimate...
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