This is a review from the post about Dell,a multinational technology corporation that is shifting away from direct sales online. As we all have known, Dell sells their PC and laptops directly to their customers online. However, Dell is slowly shifting away from this successful business model when the growth of PC sales slowed.
Dell impressed many in its early years with its distinct model of supply chain management, selling customized computers directly to customers to meet burgeoning PC demand. Those days appear to be over as Dell's profits and shares have dropped considerably from their peaks in recent times.
Therefore, Dell had announced that it would offer Dimension PCs and Inspiron notebooks through Wal-Mart and Sam's club.
What was Dell's rationale for the recent sales model shift?
Dell's stock price, which had fallen over 30 percent in the previous year while rivals such as Hewlett-Packard had performed much better.
The reason is because today's customers are willing to choose from a smaller number of off-the-shelf PCs and are less concerned with customization. And as PC prices have plummetted, inventory of standardized models turns quickly, and is less of a factor in profitability.
The shifts have converged to dampen dramatically the value of the direct sales channel built around cenralized inventory storage and PC customibility.
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