Da!,
No if,ands, or buts, about it. Purchasing terms will dictate product volume. Bart's knowledge is not the issue. Bart's ability to negotiate consignment or factory financing will determine the outcome. IMO, High Volume strategy would be welcomed by the bear market.
From a practical point of view, Intell plays a roll in the success and failure of a high volume strategy. If Intel makes Chinese products obsolete before arrival in the U.S., it closes some important doors. On the other hand, that alone may give Bart the requisite leverage to stress the importance of swift penetration of competitively priced Pentium IIIs. Two Gig Pentium IV systems are unable to overcome bottleneck caused by bandwidth limitations. Only specific types of computer users enjoy the advantages of a Pentium IV. IMO, Product lifecycles on the Pentium IIIs require rapid distribution for success in a high volume strategy.
Obviously, the number of systems CBQI attempts to sell determine the number that are actually sold. Is CBQI looking for a $ 250 profit margin on 100,000 systems or will it settle on $ 50 margin on 2,000,000? Profit margins will only be favorable early in a price war campaign. After twelve weeks, it comes down to a numbers game. Can CBQI overstock the market to the degree that it becomes unprofitable for a new entrant to compete? If CBQI can buy direct from factories in China, so can you or anyone else (like IBM and APPLE). This is where profit margins shrink.
The profit margins are not as crucial if CBQI has opportunities for volume. If CBQI fails to penetrate early and capture a modest percentage of the market, I fear this plan will find its way onto the infamous "back burner." Back-breaking sales-work must be done to assure that CBQI can compete.
We dont' have to know what CBQI plans to do to predict the future. If CBQI intends to follow a high volume strategey, it will be noticable by this Christmas. Volume will require shipping contracts (unless CBQI starts purchasing freight transport equipment). In the words of one successful man, "Genius is 1% inspiration and 99% perspiration."
T.Edison - Founder General Electric. If this "plan" is more than talk, you will see and smell the sweat.
AI
