Technology news and Jobs arrow VIRTUALISATION arrow Market share decline drives Dell to the shopfront
Market share decline drives Dell to the shopfront E-mail
by Peter Dinham   
Wednesday, 17 June 2009
Dell is working feverishly towards halting its declining market position by moving away from the pure online retail sales model to bricks and mortar outlets, with most of this year’s store expansion in China, and the addition of more stores in Europe, Latin America and other parts of the Asia Pacific region.
Clearly going all-out to boost its retail market presence, the vendor says it has already increased its retail presence to more than 30,000 store fronts globally and has recently inked a deal with Italy’s largest retailer, Media World, to sell its range of laptops and desktops both online and at 83 of its retail stores, starting this month.

Dell’s market share issues have been well documented and last January Gartner released figures showing that Dell’s market share had slipped by one percent in the fourth quarter last year, its worst performance since 2001. As Gartner reported, Dell’s market share fell from 14.2 percent to 13.2 percent, US shipments for the quarter were down by 10%, with “Asia doing poorly too, Latin America hanging in there.”

As Gartner said, the big winner has been Netbook-maker, Acer whose market share in the fourth quarter last year grew 31.1 percent to 12.3 percent to grab third place in the sales stakes.

Gartner has put much of Dell’s woes down to the fact that it is “plagued by the popularity of cheap netbooks,” a product, according to Gartner, which Michael Dell sees as only ‘complimentary’ (sic) to his company's core business.

Meanwhile, in this latest report from Dell about its retail stores growth, the company’s VP of sales and marketing for its global consumer business, Michael Tatelman, said Dell had “made a lot of progress on our multi-channel sales strategy in the past 18 months,” adding that, “we’re really just getting started.”

“Whether people shop and buy online, over the phone or in our stores,we’re getting some great momentum in the consumer electronics space and looking forward to making it easier for more people around the globe to get what they want from Dell.”

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