To: mugicha who wrote (59226 ) 5/30/1999 1:54:00 PM From: Rob S. Read Replies (1) | Respond to
Dell's direct to the customer model has worked because the public has gained knowledge of PCs and has become more comfortable buying them at arms length - particularly as experience taught them that the care given to them by the PC industry was little more than a slogan. This has also followed the broad trend of purchasing at discount and purchasing "off brands" - although DELL has grown to become anything but an "off brand". The phenomena of Costco, Home Depot, Eagle Hardware, Wal-Mart, etc. are tied to the public's demand for discount retail and acceptance of less familiar brands through a 'branded retailer'. This is helped by the rising tide of international production capacity - more and more goods that are increasingly difficult to differentiate themselves. Where there used to be only a few brands of camcorders, now there are too many to remember and all of them offer similar features, quality and warrantees. Ditto about everything else you can think of. Amidst this changing environment, DELL stepped in at the right time with the right strategy - sell product direct and assure customer satisfaction. The customer would accept an "off brand" in return for a lower price. Etc., etc.
