Dells Failure in Retail Distribution Essay example
Our paper will analyze the reasons behind its exit from the …show more content…
It turns out that Dell's decision to exit from retail has been a good one. However, a trend that has been noticed in overseas markets is that because of the inherent difference between customer preferences and maturity, the retail distribution channel works a lot better vis-à-vis the direct model that works so well for the company in the United States.
Also, 1989-1994 has seen a major spurt in growth in overseas markets for Dell. It contributes over a billion dollar in terms of revenue for the company. Dell today has a significant presence in Europe with regional headquarters in most countries while its presence in Asia is growing.
This overseas expansions has been pursued by means of subsidiaries working independent of the parent organization and following a channel strategy markedly different from that of Dell Computers, USA.
This leaves the Dell management with a number of questions that it needs to ask itself. Should Dell adopt a global channel strategy? Should it concentrate on expanding overseas or simply focus on increasing current market share in the