Dell is gradually coming out from its traditional direct marketing strategy in order to decrease yearly costs. Since its coming into existence, Dell had only been selling PCs directly to the customers till last year. However, besides person to person selling, Dell started to put its PCs in retail stores last year and so far Dell PCs have been given in more than 10,000 retain stores. Dell has taken this initiative as part of its goal to minimize company’s annual cost by $3 billion by 2011. So, from now on, Dell will increase its prepackaged models besides reducing customized selling.
LA Times reported:
The company is working to revive earnings and win back customers after trailing Hewlett-Packard Co. in the PC market for six straight quarters. To fuel sales, Chief Executive Michael Dell last year abandoned a strategy of only selling to customers directly and put the company's computers in more than 10,000 retail outlets.
Although Cannon declined to say how much Dell expected to save by limiting customer choices, he said global operations, including reducing build-to-order options, are "a significant part" of the $3 billion in annual savings Dell predicted this week that it would reap by 2011.
Well, Dell declined to reveal the exact amount it would be able to save by reducing person to person selling. Well, they are not stopping this strategy totally but who knows for how long Dell would stick to its conventional way of selling PCs to its customers. Now, let us see if Dell can serve better service to the customers by increasing sales through retain stores.
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