Its direct-sales strategy has been a winner so far. However, in today’s global market, that approach may need some adjusting.
For years, that direct, low-cost sales model worked perfectly. It allowed Dell to make high margins while selling computer gear for less than its rivals. As a result, it now holds a leading 17.9% share of the world PC market and has grown much faster than competitors Hewlett-Packard and IBM. But lately, this same sales approach might be hampering Dell’s growth.
Increasingly, industry analysts believe it’s time for Dell to tweak its sales model. After all, times have changed. And to keep growing Dell may need to change, too, and not just in appearance - last summer Kevin Rollins took the CEO reins from Michael Dell.
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