Turnaround time for Michael Dell

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Can we all agree, a basic PC is

a commodity item? By that I mean the average user really doesn't care what is inside the box as long as it does the things he/she wants. The name brand is really pretty much meaningless. A PC is a PC is a PC...

In that environment the only real differenciation is price and as we all know there can only be one "lowest priced" company. In the past that niche belonged to Dell but I think those days are over, especially as China ramps up their offerings.

Dell (the company and the man) must really look at other areas for growth and profitability. Selling TVs and such, naw, everyone is doing that. Re-labling someone elses printer? Don't see it making a big difference. So what market should they be looking at?

Dell runs into another wall here because they have never been a product innovator. For the most part they have used economy of scale to buy components cheaply from others and assemble them quickly. (Something everyone is doing now.) So with competition breathing down their neck and not having much R&D Dell faces some very serious issues moving forward.

My take on it is that Dell needs to invest heavily in R&D and product innovation to allow them to move into the infant market of home control and automation. Hire a team of coders to take Microsoft's home server concept (or one based on Linux, BSD, Unix, Solaris, whatever) and take it to the next level. (Media being only a small part of it.) Keep in mind 48% of US homes don't even have a PC...

Posted by: No_Ax_to_Grind   Posted on: 02/01/07 You are currently: a Guest | Members login | Terms of Use

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