Memo to Michael Dell 3
First, exploding batteries. Then, exploding financial statements. I know you have a lot on your plate. But while you handle these tactical issues, please consider your retail distribution strategy, which is much more important in the long run than these headline-grabbing speed bumps.
Yesterday, the Senior Vice President of your Home and Small Business Group, Ro Parra, told the press that Dell planned to open a New York store next year, based on the model of your pilot store in Dallas. "We will consider more once we get the concept tight, once we prove out the model." He added that Dell would not sell its products in big-box electronics retailers. "That's not us," he said. "It is unlikely you will see our PCs in Best Buy."
Why not?
Dell needs to learn how to run its own retail stores like my lawn needs more crabgrass. It is fine to have your own store if you are hip like Apple and can make it a destination. Of all your many virtues, hipness is not one of them. Reliable and economical, yes, but not hip. The big-box electronics retailers are exactly where you should be. Get into lots of them. Best Buy and Costco and Office Depot. You need retail saturation and volume fast, not boutiques rolled out at a leisurely pace.
Support these retailers by focusing on brand advertising that extends your old "Easy as Dell" theme to the consumer who wants to see it, talk to a salesperson about it, take it right home and use it. Advertise simple product choices with simple names that convey ease and reliability. Think "computer as appliance." Back this with execution. Keep your costs down and your product and customer service quality high. Stick to Dell's traditions. Stay with what has made Dell great. Just add the distribution channel that extends your reach to today's home and small business consumer.
Your CEO Kevin Rollins said that Dell was "reevaluating every element of the business model. We want to do things more effectively." He called it Dell 2.0. That is fine, but choose wisely what you change. Preserve your core, it is who you are. Do not give up on being the low-price leader in brand name computers.
Become great at retail distribution.
Copyright © 2006 Philip Bookman
Technorati: Dell
Yesterday, the Senior Vice President of your Home and Small Business Group, Ro Parra, told the press that Dell planned to open a New York store next year, based on the model of your pilot store in Dallas. "We will consider more once we get the concept tight, once we prove out the model." He added that Dell would not sell its products in big-box electronics retailers. "That's not us," he said. "It is unlikely you will see our PCs in Best Buy."
Why not?
Dell needs to learn how to run its own retail stores like my lawn needs more crabgrass. It is fine to have your own store if you are hip like Apple and can make it a destination. Of all your many virtues, hipness is not one of them. Reliable and economical, yes, but not hip. The big-box electronics retailers are exactly where you should be. Get into lots of them. Best Buy and Costco and Office Depot. You need retail saturation and volume fast, not boutiques rolled out at a leisurely pace.
Support these retailers by focusing on brand advertising that extends your old "Easy as Dell" theme to the consumer who wants to see it, talk to a salesperson about it, take it right home and use it. Advertise simple product choices with simple names that convey ease and reliability. Think "computer as appliance." Back this with execution. Keep your costs down and your product and customer service quality high. Stick to Dell's traditions. Stay with what has made Dell great. Just add the distribution channel that extends your reach to today's home and small business consumer.
Your CEO Kevin Rollins said that Dell was "reevaluating every element of the business model. We want to do things more effectively." He called it Dell 2.0. That is fine, but choose wisely what you change. Preserve your core, it is who you are. Do not give up on being the low-price leader in brand name computers.
Become great at retail distribution.
Copyright © 2006 Philip Bookman
Technorati: Dell
Labels: software strategy
posted by Phil Bookman at 9:47 AM
<< Home