New Strategy Costs Dell

vnunet.com on January 19, 2007

Dell 2.0 has been a costly strategic choice for the company, and the jury is still out on whether it will ultimately pay out, analysts in this story say. The heavy emphasis on direct-to-customer sales that has buoyed the company in the past also has left it with too few sales channels, helping contribute to its falling market share. Other analysts, however, say the declining share may be a result of a strategy that seeks to slow sales of low-end PCs and expand Dell's position in higher-end gaming and business models, which have a higher margin.