Monday, September 17, 2007

The new DELL

Dell enjoyed its supply chain excellence based direct selling model for many years. This year it has started selling PC's through Wal Mart and Sam's Club stores. This would be a new ball game for Dell, a game that Dell's competitors' (HP and Acer) have been experts at.

Dell is trying to target retail consumers and is faced with its first bout of problems. Rising customer service costs, maintaining dealer relations, rising product complaints (because of higher product variety), etc.

The article (link pasted below) does not point out solutions, only highlights the problems.

http://knowledge.wharton.upenn.edu/article.cfm?articleid=1799

1 comment:

Rahul said...

This is an interesting read.

I think the decision of Dell to go for multiple sales channels is a good one. When I wanted to buy a lappy, Dell offered me great customization which I didn't desire and delivery in 50 days. On the other hand, HP gave me its packaged latest HP 520 model in one day t my dorestep, payment when delivered. Plus, they sent one guy to give me a demo. I chose to get HP, as I couldn't wait that long for Dell.