Dell pioneered a direct sales model that cut out middlemen and allowed it to undercut competitors' prices. This approach has been highly successful, allowing Dell to become the #1 PC maker. However, the document notes Dell must now reinvent itself to maintain its lead as competitors like HP have narrowed the gap and commoditization threatens margins. Dell is expanding into new product categories like printers, displays and servers, but must ensure the direct model can be successfully adapted to these areas. The summary examines Dell's past success but notes the challenges it now faces in continuously innovating and reinventing itself to drive ongoing growth.
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Dell's Direct Model and Leadership of Michael Dell
1. Be Direct: DELL “ It’s amazing to me that our competitors think the customer is the dealer.” Michael Dell “ Sales Leader: Tops in Global Basis.”
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36. Be Direct: DELL “ It’s amazing to me that our competitors think the customer is the dealer.” “ No victory laps…It’s a marathon… Celebration breeds complacency. Michael Dell
37. Be Direct: DELL “ Every company needs to challenge and reinvent itself.” The big question for DELL in 2006 is HOW?
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