“The direct model has been a revolution, but it’s not a religion.” Michael Dell
"Consumers is a market by itself... We recognize that while we have been delivering products to consumers, we never had the strategy or organization to go after this market”
THE URGE TO CHANGE
The move to finally dip into the retail market is deemed strategically necessary for the company to see future success, especially in Asia, where consumers like to physically handle a product before they buy it. Dell was often criticized for pushing its direct model in a region where consumers prefer to "feel and touch" their products and pay in cash.
As a consequence, Dell has had limited success in consumer markets areas (like Asia Pacific), where its lack of physical retail presence was a disadvantage particularly against competitors such as Hewlett-Packard (HP) and Acer.
Dell’s strategy to go indirect to the consumers also include depending more on resellers and contract manufacturers to cut costs and boost sales of which the consumer personal computer business is expected to contribute definitely more than the current 15 percent of total revenue.
A NEW DIVISION AND A NEW CULTURE: a real “turnaround”
A radical change from cost minimization strategy to highly innovation driven imitation strategy.
The development of a global consumer business unit ensures, within a hybrid structure, that its resources are absolutely aligned to serve consumers as it is key to realize how fast the consumer market moves and aims to launch new models at least twice as frequently as in the past, still benefitting and contributing to the whole company.
CONSUMERS EXPERTISE and a CLEAR FOCUS ON CONSUMERS NEEDS TO FEED THE DIVISION
Carving of the specific consumer business into a clear separate unit and recruitment of external specialist to this channel (e.g. Motorolla Razr huge success architects), from marketing to merchandising and sales.
Dedicated to consumer models product development teams enhance...