Tuesday, July 25, 2006

Dell in vending machines?

Dell is opening its first store in a Dallas mall today. In the past, the company has been very successful in their strategy of selling directly to customers over the phone and the Internet but they're now expanding with the introduction of retail stores.

The store in Dallas will be the only one of its kind with a 3,000SF floor plan and a full inventory--allowing customers to browse different products before making a purchase.

This is a major shift for a company that is in the middle of launching 160 kiosks in malls across the nation. The kiosks have no inventory—the shopper places the order at the kiosk and the product is shipped to their homes.

I personally do not think the full inventory store is the model that Dell should follow—I am looking for Dell to bring me laptops in vending machines like Coke and Pepsi (and wouldn’t you love it to be for the same price?).

Dell is faced with constant price pressure from competitors like Hewlett-Packard Co. and China's Lenovo Group Ltd. Dell’s shipment of personal computers is increasing, but it’s market share is retracting. Not a good sign if you ask me! Dell—Feel free to use my vending machine idea and put Dell on every street corner (next to Coke and Pepsi).


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