Shifting to channel selling is unavoidable, but the road ahead is tough...
Of course, the numbers tell the true story. While HP has already 
dethroned Dell as the top PC vendor in October 2006, the shipment results for Quarter 1 2007 brought greater worries. HP outperformed the industry with an impressive annual growth rate of 28% while Dell floundered with a decline of 7.8%! Dell’s market share plummeted & stood at just 13.9% compared to HP’s 17.6%. Exclaims Gartner Analyst Jeffrey Hewitt, “Dell faces challenges related as much to business-model fundamentals as to execution issues. Re-evaluating its business strategy is a good first step...” But the scepticism refuses to die as well. “These are areas where Dell has limited experience, so it will be a major challenge for Dell to excel...” opines another Gartner Analyst Heeral Joshipura.
Add to that the fact that a lot of channel partners of rival companies like HP & Lenovo wouldn’t be too excited to partner with an erstwhile staunch rival like Dell. And if at all they would, they would drive a very hard bargain, which could further squeeze Dell’s margins. While times demand a focus on sales growth over bottom lines, this strategic reversal will most likely be a painful one.
For Complete IIPM Article, Click on IIPM Article
Source: IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
Home Campus Tour Contact Us Sitemap IIPM Think Tank IIPM National Brochure IIPM in Media India Today & Tomorrow
Strategic Alliance / Consulting / Intellectual Tic-up Partners Arindam chaudhuri GIDF Planman Consulting Business & Economy 4Ps Business & Marketing The Sunday Indian The Daily Indian Kkoooljobs.com
.
dethroned Dell as the top PC vendor in October 2006, the shipment results for Quarter 1 2007 brought greater worries. HP outperformed the industry with an impressive annual growth rate of 28% while Dell floundered with a decline of 7.8%! Dell’s market share plummeted & stood at just 13.9% compared to HP’s 17.6%. Exclaims Gartner Analyst Jeffrey Hewitt, “Dell faces challenges related as much to business-model fundamentals as to execution issues. Re-evaluating its business strategy is a good first step...” But the scepticism refuses to die as well. “These are areas where Dell has limited experience, so it will be a major challenge for Dell to excel...” opines another Gartner Analyst Heeral Joshipura.Add to that the fact that a lot of channel partners of rival companies like HP & Lenovo wouldn’t be too excited to partner with an erstwhile staunch rival like Dell. And if at all they would, they would drive a very hard bargain, which could further squeeze Dell’s margins. While times demand a focus on sales growth over bottom lines, this strategic reversal will most likely be a painful one.
For Complete IIPM Article, Click on IIPM Article
Source: IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
Home Campus Tour Contact Us Sitemap IIPM Think Tank IIPM National Brochure IIPM in Media India Today & Tomorrow
Strategic Alliance / Consulting / Intellectual Tic-up Partners Arindam chaudhuri GIDF Planman Consulting Business & Economy 4Ps Business & Marketing The Sunday Indian The Daily Indian Kkoooljobs.com
.
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