Dell's Retail Strategy

Dell's corporate computer business has slowed in recent years, forcing the company to increase its efforts to attract personal computer users. In the fall of 2007, Dell announced partnerships with major computer retailers, including Wal-Mart, Best Buy and Officeworks. These partnerships ended Dell's historical reliance on the direct-to-consumer channel and allowed the company to access the mass merchandise distribution channel, which is an enormous potential business opportunity for the company. Dell continued its direct-to-consumer marketing initiatives but also sought to promote its new partnerships in television and print advertising, often in conjunction with its retail partners. In doing so, Dell has begun to compete more heavily on price, as retailers such as Wal-Mart are known as low-price shopping destinations for all types of goods. Recently, Dell's marketing efforts have been less focused on product features and customizability and more focused on low price as the defining feature of Dell computers.

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