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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."
Dell has always sold directly to consumers via their web site and phone operations;
No they haven't. Dell got their start by selling through smaller computer chain stores before their direct phone/catalog sales and the invention of the WWW.
What they need is to have new models. The difference between theirs and say a cheap chinese model is minimal. They need to start innovating again. If they start selling Linux, that is to their advantage. If they developed new ideas, rather than just rebranding others, that is to their advantage. But as it stands, Dell will continue losing ground esp if they start selling their system via regular sales channels.
I prefer the "u" in honour as it seems to be missing these days.