Archive for July 20th, 2009
Dell’s Downfall
Laura Reis’ article, The Demise of Dell, provides a great example of why expansion is NOT the answer. 10 years ago, Dell was the best selling personal computer brand in the world! They were focused on one thing: selling personal computers directly to businesses. And then they decided to expand to the consumer electronics market. They even started selling their PCs in retail stores, such as Sears and Walmart.
What were they thinking? Dell was known for having a direct to business sales/distribution model. They sold their souls, thinking that they would be able to capture more customers if they found new ways to sell and distribute their product. This change turned their tried-and-true business model on its head. It confused consumers and made people wonder what their brand really stood for.
History repeats itself and this is one example that proves that brands can’t be everything to everyone. Stick to what you know and what you’re known for!
