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Just In Case You Had Any Doubts, Dell Has No Plans To Buy Radio Shack
from the baby-steps dept
A couple of weeks ago, a writer at BusinessWeek suggested that Dell should consider buying out Radio Shack as a way to quickly rectify its lack of retail presence. There's no doubt that Dell's once-vaunted direct sales model has come to be viewed as a handicap, but this suggestion seemed overly drastic. In an interview, Michael Dell spoke about the company's plans to overcome the limitations (via News.com) of its existing business model by expanding its use of channel partners and finding its way onto more retail shelves. There's nothing particularly radical here (except the fact that he's actually doing an interview with a magazine devoted to channel news), but radical isn't necessarily what the company needs. HP has seen a major turnaround in its fortunes without doing anything desperate. The PC industry isn't the most exciting space to be in right now, but there's no reason that a company with Dell's presence and prowess can't continue to profit in it.
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I absolutely agree. (and thank goodness he isn't buying RS)
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Buy Gateway instead
EOM
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Should have bought CompUSA before
They should have bought CompUSA before they abandond key markets like Seattle.
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"The PC industry isn't the most exciting space to be in right now, but there's no reason that a company with Dell's presence and prowess can't continue to profit in it."
It's hard to imagine Dell knows how to profit in any other business. This is a fairly large company, and I doubt they are very nimble with respect to whatever "space" they try to do business in.
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One solution...
All that Dell needs to do is make arrangements with the major players in brick and morter stores for distribution of their computers.
Said stores can carry a select number of computers, ready to be customized on the spot to the customers specification.
The problem that Gateway had was with all the glitz that the stores offered, there was no way to walk in and buy a computer, you still had to order it, and wait for it to be delivered. Nobody really wants to do that.
Of course, it won't be as easy as I make it out to be...
EtG
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That would be like buying a coffin
I actually sold TRS-80's at Radio Shack, and had a Color Computer for a while. Radio Shack's reputation could destroy what is left of Dell.
That guy at Business Week needs to get his head out of his posterior, and breath some fresh air for a while.
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