It's no surprise that Dell (NASDAQ: DELL) wants to catch back up to rival Hewlett-Packard Co. (NYSE: HPQ) as the world's leading PC vendor. With those bragging rights come contracts and deals, among other things, and right now, HP is hot, while Dell is not. So, even as HP continues to sell very well in the U.S. retail sector while Dell is just beginning to test the waters, the world's second-largest PC maker is taking its market share action plan to Japan, looking to overtake NEC as Japan's top PC vendor. In a non-surprise, the company wants to do it by offering a good product selection at retail stores and with custom colors on its products (my guess: laptop PCs only).
Right now, the bulk of Dell's sales in Japan come from corporate customers, similar to how its business has been in the last half-decade in the U.S. market. But, with those sales stagnating a bit and with more consumers venturing into retail stores to buy instead of clicking around a website, Dell had no choice but to attack Japanese sales with a different approach. Sadly, it's years overdue. Dell is quite a bit behind the curve in terms of how to balance its corporate sales versus consumer sales (globally), but at least it's making the effort now instead of 2008.
Dell was so successful with direct sales -- to consumers and corporate customers -- that it apparently let arrogance rule the day, as competitors like HP and Taiwan's Acer were racking up huge numbers in retail stores, where Dell did not even exist. Compound that problem with the fact that laptop PCs are killing desktop PCs in sales in almost every market, and one could see why Dell fell behind. Looking at a standard Dell laptop PC in 2006 was as boring as burnt toast, even as the competition was getting stylish laptop systems into the hands of retailers everywhere. Dell did pass Fujitsu as Japan's second-larger PC vendor in the quarter ended June 30, but stepping ahead of NEC will be no easy task.
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Reader Comments (Page 1 of 1)
9-07-2007 @ 11:32PM
Sid said...
Dell has all the right strategy resources and mind set to gain the market share faster than the rivals. It is just a mtter on time ( 1 to 2 yrs) before Dell climbs to the No. 1 spot again. I do not belive that NEC and others have the bendwidth to compete with Dell in the long run. All Dell has to do today to gain more market share is to penetrate the retail market. There are reasons for not being there yet, but nothing is stopping them from doing it. Personal experience tells me that HP can not maintain its current position for too long. The market share gain of the last 3-4 years for HP was just a matter of opportunity given to them due to lack of prudent strategy on Kevin Rollins of Dell. He is gone now and Micahael is back in charge . Michael brings the personal expereince and attention to the business unlike any one else. He is a relationship builder and can easily lure clinets of all sizes his way. HP does not have the ability to bring the personal touch to the business. I have had nothing but horrible experience with them over and over again. Certainly , issues existed with Dell as well, but they have ALWAYS come true for us. Above all , Dell has made the commitment to build/assemble as many products as they economically can in the USA. We should raise our hats to Dell for that. Dell should be credited and recognized for their tremendous contribution to the communities where ever they conduct their business. They are an all around American company and we should support than for that. HP has its place in the market as well, but Dell has a better story and game plan. Dell will not let you down , with HP you are just another customer. I would not be too surprised to see Dell pull a rabbit out their hat either by the end of the year or early next year announcing slae & marketing strategies unlike ever before.
I remain very optimistic about Dell.