Product details

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Abstract

Since early 2006, Dell, a personal computer manufacturer started facing problems as its market share began to decline. By following the direct selling business model in 1984, Dell had become the market leader by 2001. Although this model helped Dell to grow fast in the PC industry, with the changing consumer behaviour, this strategy of Dell failed to work. Dell was challenged by the other top PC makers like HP and Lenovo that focused on selling through retail outlets. Not only this, Dell was also poorly performing in the printer segment. The company struggled to maintain its market share and by 2006, it lost its leadership position to HP. Moreover, Dell was burdened with mounting operating costs. To revive itself, the company planned to focus on the emerging markets like China. Moreover, Dell planned to shorten its new product development and focus on the direct as well as the indirect sales method through the hybrid sales model adopted in 2007. Whether Dell would be able to regain its lost market through its innovative business model or not remained to be seen.
Location:
Industry:
Other setting(s):
2007

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Abstract

Since early 2006, Dell, a personal computer manufacturer started facing problems as its market share began to decline. By following the direct selling business model in 1984, Dell had become the market leader by 2001. Although this model helped Dell to grow fast in the PC industry, with the changing consumer behaviour, this strategy of Dell failed to work. Dell was challenged by the other top PC makers like HP and Lenovo that focused on selling through retail outlets. Not only this, Dell was also poorly performing in the printer segment. The company struggled to maintain its market share and by 2006, it lost its leadership position to HP. Moreover, Dell was burdened with mounting operating costs. To revive itself, the company planned to focus on the emerging markets like China. Moreover, Dell planned to shorten its new product development and focus on the direct as well as the indirect sales method through the hybrid sales model adopted in 2007. Whether Dell would be able to regain its lost market through its innovative business model or not remained to be seen.

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Location:
Industry:
Other setting(s):
2007

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