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Dell Has Lost the Channel War
by , 1:55 PM EDT, September 21st, 2007
The channel wars are over and Dell has lost according to Steve Brazier, CEO of Canalys, who spoke in Madrid on Friday.
That's the interpretation by Channel Register on Friday since Dell wasn't actually mentioned by name in the talk.
Mr. Brazier, who kicked off Acer's press jamboree, said that "any vendors contemplating a jump from a direct-only model into the channel could not expect a soft landing." He pointed out that building up a channel strategy takes many years and close work with channel partners. The logistics required to support customers in the retail channel are completely alien to the direct sale model, especially with regard to inventory.
"The channel has beaten the direct model," Mr. Brazier declared. He explained how an 20-30 day inventory is required to smooth out the flow in a tightening PC market. Dell's just-in-time model was unfavorably compared to Henry Ford's model T production line and has "wrong-footed" them.
Acer recently agreed to buy Gateway and is one of Dell's biggest competitors. Dell has been having trouble lately with a partial transition to a channel model, perhaps inspired by Apple's success with their retail stores.
Observer Comments
Fri Sep 21, 2007 5:52 pm Subject: A dissenting opinion
Sat Sep 22, 2007 6:17 pm Subject: Email rather than post about errors
QuoteGuest wrote:
"OFF" dammit. "...who kicked of (sic) Acer's press jamboree...."
A suggestion: click on the author's name to send an email, rather than post a message that will no longer apply when the error is corrected. That will also probably result in the error being corrected more quickly.
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