Mohan,
Excellent synopsis!
The question is not that the model is intact, but where will it be in a couple of quarters.
The competitive environment, the technology changes, world and US economy, and indeed personnel changes will all effect reactions from DELL. If they have their share of visionaries on staff, they will find "profitable" markets in which to grow... and not necessarily limited to Computers. A company which departs widely from a core competency, though, may suffer an impact, at least initially, on profitability.
Application of an Internet Direct Sale Model can, IMO, become a core competency in itself. Direct Sale Computers certainly can be a good base to start from, especially for Dell, which has a marvelous "Customer Service" ethic firmly entrenched in its people.
Thanks for your great post.
RW |
