Dell's Strategy Challenge: 10 Things We Don't Get About Dell
1. Why the Streak?
Dell wants to compete in the tablet market against Apple's iPad. But it's doing so with a 5-inch tablet running on Google's Android platform, called the Streak. The Streak looks to be a well-designed product, and given the success of Android, it could do well. But Dell's decision to focus its efforts on the Streak is troubling. The company is performing poorly in the computing space. It should be focusing its time there first.
Dell is a perplexing company. Years ago, it was atop the tech industry with its direct sales model. Not only was it selling computers at an astounding rate, but the corporate world was quite happy with its PCs. Everything was going right for the Texas-based technology company, even though it shunned the channel with its direct-only sales model. And then all that changed. As the consumer market shifted away from traditional purchasing models, HP built far better computers than it had for years, and Dell lost its way, the company was marginalized. Its dominance gave way to HP, and after a short fight, Acer. Today, Dell is the world's third-largest PC manufacturer and it's trying desperately to catch up with HP and Acer. And unfortunately for the Dell, catching up will be extremely challenging. Dell is a tough company to understand. And why it doesn't follow sound strategies in its many divisions is unknown. Read on to find out how Dell continues to confuse both consumers and enterprise customers.This article was originally published on 2010-08-23
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