5 Things That Will/Wont Work for Dell
5 Things That Will/Wont Work for Dell
By Scott Ferguson
5 Things That Will/Wont Work for Dell - 5 Things That Will Work for Dell: #1. A Smaller Dell Is More Nimble
5 Things That Will Work for Dell1. A Smaller Dell Is More NimbleNo one wants to see employees laid off, but the move to cut more than 9,000 of Dell's 82,000 positions-
5 Things That Will/Wont Work for Dell - #2. More Emphasis on Notebooks
2. More Emphasis on NotebooksDell has been working to reinvent notebooks. With lower average selling prices, laptops remain the hottest part of the PC market-
5 Things That Will/Wont Work for Dell - #3. Acquisitions Lead to Better Storage Offerings
3. Acquisitions Lead to Better Storage OfferingsDell took a chance and acquired EqualLogic in 2007, a signal that Dell believes in the future of iSCSI and that savvy storage products can make a big impact in the enterprise market and for small companies looking for solutions to deal with an overabundance of data. Michael Dell believes that iSCSI storage, along with virtualization, will significantly affect the development of the data center.
5 Things That Will/Wont Work for Dell - #4. Dell at Your (IT) Service
4. Dell at Your (IT) ServiceFor years, Dell has lagged behind Hewlett-Packard and IBM when it comes to offering services to customers. That will change. Michael Dell has talked about a $1 trillion worldwide market for services, and how his company plans to use its expertise in hardware and building data centers to offer a number of services for enterprises and smaller businesses. These services will range from cloud computing to overall PC maintenance.
5 Things That Will/Wont Work for Dell - #5. A New-Found Love of the SMB Market
5. A New-Found Love of the SMB MarketDell has always sold a lot of PCs and servers in the enterprise-
5 Things That Will/Wont Work for Dell - 5 Things That Wont Work for Dell: #1. Abandoning the Desktop
5 Things That Won't Work for Dell1. Abandoning the DesktopDell is looking to expand its notebook lineup and is closing down its Austin, Texas, desktop manufacturing facility. However, desktop PCs are still critical to the company's overall business and financial health. While there was little mention of desktops during Michael Dell's presentation, PCs still accounted for $19 billion in revenue last year.
5 Things That Will/Wont Work for Dell - #2. Entering the Crowded Phone Market
2. Entering the Crowded Phone MarketFor at least six months, there have been rumors that Dell will enter the cell phone or smart phone market. The company has not commented on these rumors, but some analysts who follow Dell believe it's a mistake for the company to enter a market where it can add little value.
5 Things That Will/Wont Work for Dell - #3. Current Channel Strategy
3. Current Channel StrategyTo generate new revenue, Dell officially embraced the channel for the first time. However, the channel has not fully embraced Dell's model, and Dell has not yet convinced its partners that it won't try to steal customers away. Dell is also still adjusting to its post-direct-sales-model ways.
5 Things That Will/Wont Work for Dell - #4. A Dell on Every Shelf
4. A Dell on Every ShelfIn addition to the channel, Dell has jumped into retail. While it might be a better way to connect to consumers than through the direct sales model, the retail market is competitive-
5 Things That Will/Wont Work for Dell - #5. Emerging Markets
5. Emerging MarketsMichael Dell personally visited China, Dell is opening factories in Eastern Europe, and there's a plan in place to embrace the overseas market. However, HP is already well invested there, and Dell remains tied to the U.S. market, which accounted for more than 50 percent of Dell's revenues last year. HP, in contrast, pulled in 70 percent of revenues from overseas and seems in a better position to take advantage of the switch to that market.
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