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Dell changes its channel tune

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 23 Apr 2008

Computing giant Dell has done an about-turn on its direct selling approach and is looking to the channel for future growth.

Yesterday, the company announced the South African branch, in line with the global Dell , would "work far more closely with the channel than it has done previously".

This is in stark contrast to its previous modus operandi of going directly to market.

"We are executing a global strategy designed to increase choice," says Stewart van Graan, MD of Dell SA.

"Dell has already built a $60 billion business on its direct sales model, but working more closely with the channel will simply provide us with better market coverage, as we will now be taking products to markets we have not addressed before," he says.

These markets include through consumer routes, as well as small and medium enterprises.

"Dell's evolving business strategy combines our direct customer model with new distribution channels to reach additional consumers and small businesses through retail partners and value-added resellers," says Van Graan.

Dell will comment further on its new strategy after this week, when a big channel announcement is expected. In light of this, it has declined to reveal the reason for its about-turn.

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