Wednesday, May 24, 2006

This Month's Help for the Clueless: Dell

Isn't it surprising and interesting that when apparently successful companies run off the end of the cliff they start grasping at straws?

Take a look at this: Mac News: Apple News : Dell Eyes Retail Again, With Apple Stores as Model: "Struggling to maintain its lead as the top personal PC maker, Dell plans to once again enter in the retail business when it launches two stores at shopping centers later this year. In contradistinction to Apple, which stocks products on-hand for customers to carry out after purchase, Dell will maintain its direct model by having shoppers place orders online for later pick-up at the store."

So, Dell sees Apple becoming wildly successful at their retail strategy. They failed at their own approach - mall kiosks where you could see a couple of computers, but had to order and wait for the computer to be delivered. So, if that didn't work, what should they do? Scale up, of course!

No, that's not right. Apple is succeeding because they have a very specific vision. First, they carefully scout locations and pick and pay for prime retail spots. Next, they went to retail experts from places like the Gap. Next, they designed stores that are clean, elegant, and uncluttered. The computers are all up front, all available and fully functional. And if you like what you see, you can take it with you. Oh, and Apple isn't targeting computer shoppers. They're targeting shoppers. A much bigger group. The local Apple store is always busy, always crowded.

I've said for some time, Dell does one thing very well: they have manufacturing a commodity PC down. They don't engineer anything, don't innovate beyond the manufacturing/inventory/production cycle.

So, Dell, if you want a chance at succeeding, don't just copy the surface of the Apple Store, copy the whole thing.

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