Chuzzlewit, re:<<...I believe that Geoff Nunn was arguing against e-commerce expansion because he thinks that Dell's major competence is in the manufacture of computers. He quite correctly pointed out that when companies stray too far from their core competency they run the risk of some serious missteps. Other people on the thread, myself included, see Dell more as a marketing and distribution company, and consider Dell's web presence to be a natural part of that enterprise. I think that Dell's expanded e-commerce efforts in Japan are evidence of that.>>
Chuzz, thanks for the response. Some very interesting points being made. Geoff Nunn is correct in his observation about straying too far from one's core competency. This can sure lead to serious missteps.
Yes, Dell is a marketing and distribution company. However, we should not underestimate the feat involved in setting up efficient and world class manufacturing, materials, quality assurance, engineering, etc. organizations. All these functions, including marketing and distribution, must be coordinated in order for Dell to excel. Certainly, Dell has been a master in managing these diverse functions.
So, if Dell were to expand their e-commerence business to include products other than pc's, add-ons, etc., what would they sell...software, peripherals, memory chips, etc.? They already sell these products. Would Dell expand into non computer products? I think this would be a mistake. Guess I don't see how Dell could go beyond what they currently are doing on the Web Site and still remain focused on their core business and products.
Hope I didn't miss a significant point. By the way, does the Japanese Web Site differ from the one in the U.S.? If yes, in what ways?
Stock Bull
|
