Everyone knows the story of how Michael Dell pioneered the direct-to-your-door computer sales model out of his college dorm room. Now back at the company’s helm after a hiatus, he’s thinking of finally looking to other channels to boost flagging sales. So what took them so long to lose their religion?
Dell Inc. founder and Chief Executive Michael Dell has informed employees of new plans to re-ignite growth at the big computer maker, after a recent meeting with the company’s overhauled executive team.
In an email sent to Dell’s world-wide staff on Wednesday, Mr. Dell outlined moves to reach more customers and make technology simpler for users. Mr. Dell wrote that the company needs to streamline its management structure to speed up decision making.
Significantly, the message said Michael
Cannon, Dell’s new president of global operations, will pursue new models of
distributing and manufacturing computers. Dell originally prospered by selling
directly though the telephone and Internet, particularly to businesses. But
rivals such as Hewlett-Packard Co. have gained ground through reliance on retail
stores and other indirect distribution."The Direct Model has been a revolution, but is not a religion," Mr.
Dell said in the memo. He added, "We will continue to improve our business
model, and go beyond it, to give our customers what they need."
Dell Could Go Beyond Its Direct-Sales Model In Bid to Bolster Growth – Wall Street Journal
Tags: Dell
