Is Dell Abandoning a Direct Sales Model?

Since the start of the year, Dell has really been starting to experience problems with its direct sales model and has steadily been losing ground to HP, who now occupies the number one spot in the PC sales market. To win back its dominant position, the Texan manufacturer is looking at new ways to sell its computer systems, and the direct sales model, which was what made Dell such a success originally, may be abandoned.

Friday, in a leaked internal memo to staff, Michael Dell stated: “The direct model has been a revolution, but is not a religion,” and then goes on with “We will continue to improve our business model, and go beyond it, to give our customers what they need.

Does this mean that corporate customers and home users will have to go through resellers / retailers┬áto buy Dell boxes? Only time will tell, but according to analysts, this is what Dell must do if they want to win back the market share they lost, and I agree with them. Resellers usually stock systems and ship them fairly fast when ordered. The current problem with Dell is that when anyone orders a computer, it takes between 5 to 10 business days to be manufactured and shipped. This can be very frustrating to anyone who needs a machine in a rush. I know from personal experience what this feels like, as I’ve been in that position on occasion. So what did I do when such emergency arose? I ordered a system through one of our resellers, and gladly accepted the HP.

(via MSNBC)


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