Project Experience

Changes in Distribution Strategies Creates an Industry Powerhouse

Client Situation
Dell is a prime example of how combining traditional and innovative distribution channels produced an industry leader. Traditional, direct sales forces have become too expensive to use in the information technology industry with its constantly dropping prices. However, Dell decided to reach its customers with a direct sales force. But Dell made its sales force extremely efficient by off-loading administrative tasks to telemarketing centers and marketing to the web. Thus, our client with its indirect distribution strategy, saw its client base successfully attacked.

Fuld Approach
Fuld & Company interviewed numerous users of products produced by both the client and Dell to determine why Dell was achieving such success against our client. Leveraging the customer interviews, Fuld & Company then spoke with Dell executives to refine our understanding of Dell's distribution strategy and its future plans.

Benefits and Implications
With customers able to obtain up to date information on Dell products, configure their systems and place orders electronically, Dell's sales force could concentrate on relationship building. With this understanding of how Dell achieved productivity by off-loading many tasks from its direct sales force, our client could develop new relationship strategies for its organization and channel partners. For more information, contactMark Chodnowsky at mchodnowsky@fuld.com