Interesting article. Thanks.
Well, Dell is doing quite well with their direct sales approach - selling PC's over the phone and the internet.
Believe it or not, I didn't realize that Dell started his business from his dorm room at college! Stuff like this makes me wish I'd have a great idea revelation...lol
Partial, from that article:
DIRECT-SALES ADVANTAGE
The direct-sales approach that Dell pioneered has proven to have major advantages over traditional methods
-- Because Dell builds computers as they're ordered, there's no need to keep a big inventory of parts or already assembled PCs.
-- Dell can incorporate the latest chips and other new technology as soon as it comes out, without having to worry about selling PCs that already are on the shelves (because there are no shelves).
-- The company doesn't have to contend with returns from dealers.
-- Because there are no middlemen, there's no extra markup. Dell can afford to sell its products for less than competitors who deal with the distribution channel.
All of Dell's rivals have been experimenting with ways to build PCs to order and to embrace direct sales. But at the same time, they can't abandon distributors, who provide installation and technical service that the PC-makers aren't equipped to handle.
''Dell will continue to roll until Compaq, HP and IBM take some very bold steps to combine the direct and indirect channels,'' said analyst Scott Miller of Dataquest.
SEAMLESS BLEND WITH NET
The Internet has proven especially fortuitous for Dell, blending seamlessly with its way of doing business. Not only has it opened up a new channel for sales, it also has given the company a neat way to foster and maintain relationships with major corporate customers. In fact, Dell custom-designs Web sites for companies so that they can get fast access to information about products and services they regularly buy.
Interestingly, Dell, alone among major manufacturers, has been able to resist dipping into the market for sub-$1,000 consumer PCs. The reason is that the company has business coming out of its ears in corporate PCs, workstations and servers, all of which fetch far higher prices than entry-level home systems.
Good potential here then, if AMGV can reach for and get a good percentage of the home systems market. May just have something really good then as AMGV is also building as ordered. And they're just now getting started. One step at a time... Sorry if I've missed it, but what other avenues toward sales (in addition to Walmart BTO) does AMGV plan to use?
Will continue watching with interest. |
