*NEWS*HP VS. DELL ,THE BATTLE CONTINUES!

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*NEWS*HP VS. DELL ,THE BATTLE CONTINUES!

 user 2005-02-11 at 11:28:00 am Views: 79
  • #10194

    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