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Dell remaining silent on retail channel strategy

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Dell, Inc. (NASDAQ: DELL) has been wading in the retail pool for next to half a year now, first entering into Wal-Mart Stores, Inc. (NYSE: WMT) locations and just recently into Staples, Inc. (NASDAQ: SPLS) stores. This is good. Instead of focusing directly on consumers calling into its sales lines or visiting its website, Dell needs to expand its sales strategy. But, the goings on are early.

One thing that is confusing to the marketplace is Dell's intention on the reseller market, to which it may enter to some unknown degree. Yes, that statement sounds pretty ambiguous, but that is the feeling many channel retailers are receiving right now, apparently. Dell announced this past summer that it intended to pursue a channel strategy -- but what that strategy is still remains unknown as of November. Is Dell having a failure to communicate here?

Some reseller partners may, in fact, be turned off by Dell's failure to line up exactly what it plans to do with its channel strategy. That is a segment of customers you don't want to get on your bad side, and hopefully Dell knows this. After all, selling through national retailers is not the only way to enter retail these days.

Add to that some frustration that existing EqualLogic customers (a company Dell just acquired) are feeling and it's pretty easy to see that there are legitimate beefs here. One reseller partner with a heavy investment in EqualLogic summed up his feelings pretty easily by saying "It's very difficult for me to believe Dell will embrace the channel after 25 years of bad mouthing the channel and selling a half percent over cost." Ouch.

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Last updated: November 22, 2009: 10:05 PM

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