HP VERSUS DELL:THE BATTLE CONTINUES !

[Anonymous]

HP
Versus Dell:The Industry’s Battle of the
Decade 
 Lyra Research
2005

Dell’s strategy:

“Printing is going to be big business for us. I think we can save customers
a lot of money there and deliver a lot of value.” –Dell Chairman Michael Dell
to PC Magazine, February 3, 2004.  

HP’s Response:
“First, Dell is a
very good company, there’s no question about it. But Dell is not a technology
company; Dell is a distribution company. They are a great distribution company.
But what Dell has basically perfected is the direct distribution of other
people’s innovation and invention.” –HP Chairman and CEO Carly Fiorina to PC
Magazine, September 9, 2004.

Lyra’s
Analysis:
Dell’s direct distribution
is much less costly, more efficient, and controllable than HP’s various indirect
channels. HP also distributes direct to consumers, but is far behind Dell in the
sophistication and scope of its efforts. HP also lags behind Dell in terms of
the revenue driven through this channel.Dell has no indirect distribution, and
thus little or no access to consumers who prefer to buy through
bricks-and-mortar retailers and resellers, thus putting an
upper limit on its potential market share

[Author]

February 11, 2005 at 11:30 AM