Fix Your Demand Chain
2007-02-02
Owen Thomas writing for Business 2.0 hits several nails on the head in an article about Dell's business performance these past few years:
Dell needs to figure out a new selling proposition, since its price advantage has disappeared and its customer-service message lacks credibility. That's why Michael Dell's new job is so tough. It's not clear why anyone would buy a Dell today.
The other factor in the equation is that Dell only controls half of their product. Microsoft controls the other half, arguably the most important half. So they can't control most of the product, and the rest is made from commodity parts. It's no wonder that the biggest player is feeling the biggest pain.
Dell needs to figure out a new selling proposition, since its price advantage has disappeared and its customer-service message lacks credibility. That's why Michael Dell's new job is so tough. It's not clear why anyone would buy a Dell today.
The other factor in the equation is that Dell only controls half of their product. Microsoft controls the other half, arguably the most important half. So they can't control most of the product, and the rest is made from commodity parts. It's no wonder that the biggest player is feeling the biggest pain.
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