With Wal-Mart Stores, Inc. (NYSE: WMT) and Dell, Inc. (NASDAQ: DELL) already having inked a solid relationship last year, it should be no surprise that the PC company would be partnering with the world's largest retailer to test out in-store technical support services.The experiment involves 15 stores in the Dallas, Texas region. These "Solution Stations by Dell" will focus on home theater installations, PC repair, and wireless network setup assistance. It's hard to see how in-store kiosks can assist customers who then have to take all that equipment home, but for a Dell brand builder alone, the partnership is quite unique.
I'm a bit puzzled how Dell will be able to assist with home theater questions and installations, but that's besides the point. If Wal-Mart really intends to compete with the in-store technical support concept, it needs to attack Best Buy Co., Inc.'s (NYSE: BBY) Geek Squad model and really add some value to that consumer experience. Consumer electronics are more confusing than ever for most U.S. consumers, and having some properly seasoned experts in many Wal-Mart stores to help with all those questions would be of enormous benefit.
Not only would Dell's image be polished if this experiment is successful and the Solution Station kiosk concept goes into more Wal-Mart store locations, but the retailer has a real chance to keep it on top of world in terms of consumer electronics purchases. Circuit City, Inc.'s (NYSE: CC) Firedog concept has been left behind as that retailer continues swirling down the drain, so Wal-Mart and Best Buy may be the only ones that could give technical support on a national stage in all locations. Best Buy, though, is already positioned well ahead of Wal-Mart here. It's Wal-Mart's game to lose.
Reader Comments (Page 1 of 1)
7-22-2008 @ 7:37PM
A said...
Sounds like your 2 steps behind on the thought process.