Businessweek Archives

A Risky Detour For Dell


In Business This Week

A RISKY DETOUR FOR DELL

Dell Computer has promised for months to return to the hypergrowth of yore. But on July 11, the personal-computer company turned its back on the fastest-growing segment of the industry, cutting ties with five retail partners including CompUSA and Best Buy. With retail sales projected to contribute just 2% of its sales for the quarter ending July 31, the company decided to refocus on its vaunted direct-mail operation and other, less costly channels--such as marketing via computer networks. Analysts agree the move will bolster profits in the short term but question the long-term wisdom. By limiting its growth potential while Compaq, IBM, and others crank up volume, they say, Dell could lose market share.EDITED BY KEITH H. HAMMONDS


We Almost Lost the Nasdaq
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus