Replies to post #42641 on Hartcourt Companies (fka HRCT)

[Investorman]

The key to Dell's success according to the company is "how" they sell computers. They believe that their business model is more efficient and profitable than the methods utilized by their competitors. Keep in mind that most of Dell's sales are to business, government and schools, not individuals even though individual sales are significant. As for the hand-holding see next post.

[Investorman]

Dell Inc. Pins Hopes On Services To Boost Profit-WSJ
November 10, 2003
The Wall Street Journal reported that Dell Inc. is applying the low-cost techniques that put it atop the PC industry to the computer-services business. It is tapping a glut of trained technicians and hungry-for-work service companies, aiming to make the unsexy business of maintaining and servicing computers for corporations its next big moneymaker. The low-cost structure mirrors the way Dell revolutionized the PC business a decade ago. While competitors designed their PCs with special bells and whistles and filled warehouses with them, Dell bought components off the shelf and built the computers to customers' orders, reducing overhead and keeping prices low.

[Investorman]

I am not implying that other business models aren't viable. HP, Compaq, IBM, etc aren't about to go out of business. I just don't see Dell altering their successful model. Even WMT doesn't try to be everything to everybody. HRCT has apparently decided on the niche they want to develop and it may very well be the best for the PRC at the present time.

[1moodyblue]

!!!! Doc heres why the Dell senario with them HAVING TO bend their own business model or tweek it as you might say is because of the Chinese NOT being big on the Credit Card purchases and the fact that businesses do not except Credit cards . The figure for all Credit purchases was 2.7% for all of China and get this only 5% carry a balance on their cards compared to 75% in the US. As a matter of fact Chinese businesses frown upon their use. So how is Dell going to sell their products over the phone or internet to people who don't have credit cards. You just might need a physical presence(store) so they can come in a pay you CASH which is what they prefer. Read todays article on this in the Wall Street Journal, page b1 right side. Titled "CHINA PRODS IT'S CONSUMERS TO USE PLASTICS"