Dell Moving Beyond Direct Sales Model

Moving Beyond Direct Sales Model

Dell Inc -

Agenda

Present: Dell’s direct sales model

  PC-market and its implication on distribution Advantages & Disadvantages of the model

Future: New distribution strategy

  Opportunities Challenges and success factors

Environment

Dell acts as the global player in the PC industry due to



Present situation Environment Direct sales model Future view

pioneering an exceptional business model of direct selling with the “golden rules” of customization, no inventory and no indirect selling

But changing industry environment has highly intensified competition (HP, Acer, Apple…) so that Dell

 

Distribution strategy Key factors Conclusion

looses No.1 position in worldwide PC shipments and market share for the first time is faced number of complaints about support services

That requires the corporation to reconsider ones business model

Our focus today: distribution strategy

Current Situation

Dell aims at winning back No.1 position through an effective market penetration Combining strengths of the direct sales model

    Cost leadership Customization/CRM Availability 24hours/7days Image / branding existing product new existing

Market penetration Product development

Present situation Environment Direct sales model Future view Distribution strategy Key factors Conclusion

  

Buying power of mass market Local physical presence Face-to-face services

Dell’s road to success: complementing the direct sales model with new distribution channels (e.g. local retailers…)

new

with opportunities of a new distribution strategy

market

Market development

Diversification

Key Factors

Will Dell have success with the new distribution strategy?

• • •

Present situation Environment Direct sales model

Cooperation with strong partners (Retailers / VARs*) New channel partner program Marketing activities (Acquisitions)

Future view Distribution strategy Key...