Analyst: Dells Wal-Mart Choice Creative

News Analysis: The PC maker must be careful about the signal it sends by offering low-end PCs through Wal-Mart, a Forrester analyst says. (The Channel Insider)

Dells move to sell through Wal-Mart was a "creative choice" and the PC maker needs to be careful about balancing the message that choice sends, according to J.P. Gownder, a principal analyst at Forrester Research.

Gownder has been watching the companys moves into the retail space.

"They are going for cost-sensitive consumers, and if there is something that Dell needs to be careful of its that they need to make sure that everyone understands that this is the low end of their product line," he said. "They have spent the last five years trying to convince everyone that they are a high-end build-to-order company."

/zimages/4/28571.gifClick here to read more about Dells decision to move away from its direct-only model and sell products through Wal-Mart.

Gownder said the company needs to ensure that the message spread by the recent move is that it caters to a range of price points and needs—the same way General Motors has both luxury cars and economy cars.

Gownder described Dells choice of Wal-Mart as "creative" because more natural targets would have been Best Buy or Circuit City Stores, he said.

But Dell has said that Wal-Mart, as the worlds largest retailer, can provide it with an education about retail.

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