Dell Rethinking the Direct-Sales Market
Dell has always sold directly to consumers via their web site and phone operations; it's a basic element of their business. Chairman and chief executive Michael Dell is now conceding that the company may need to rethink basic practices by considering alternative methods of selling their products. While initially no specifics are given, the thought seems to be than eventually the company will begin working with a retail chain. "Dell's direct model came under pressure as the market for PCs shifted to notebooks from desktops last year. It is harder to custom configure notebook computers, so they had to be manufactured in advance, which lost Dell some of its cost advantage. In addition, consumers were showing a preference for touching and feeling a notebook PC before buying it."
TFA: >Michael Dell is now conceding that the company may need to....begin working with a retail chain.
Hah! I said this last week when we were talking about HP beating them in sales.
... liquidate the company's assets and distribute the proceeds to the shareholders.
The mall kiosks are also the source of one of the funniest direct mail goofups that I've ever seen by a large company like this, as well. The back of one of their advertisements once included a map of the US states along with all of the states with the kiosks highlighted. For some reason, it caught my eye that NC wasn't highlighted, even though I knew that there was one in Concord, NC.
:-)
Then I noticed that W. Va. was highlighted but the store address list above didn't say anything about W. Va.
It really impressed me seeing the little "NC" inside of W. Va. on their map.
I guess their marketing department's geography skills were a bit rusty that week.
Throw the bums out!
And Dell exponentially expanded when it went to the Internet. I think someone owes Al Gore a thank you. *cough* Michael *cough*