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Dell to dump direct sales model?

Michael Dell rethinks direct sales revolution

Dell CEO Michael Dell has dropped his biggest hint yet that the PC vendor is looking at an indirect channel.

In a leaked internal memo to staff, Dell listed several key steps the company would need to take in order to retain a dominant position in the PC market. One of these was to pursue new opportunities outside of its direct sales strategy.

"The Direct Model has been a revolution, but is not a religion," Dell stated in the memo. "We will continue to improve our business model, and go beyond it, to give our customers what they need."

Dell's admission is the first time he has shown an interest in developing an indirect channel. The strategy would be in stark contrast to its direct model of selling computers via its website and hotline.

Michael Dell was reinstated to the CEO post in January following the departure of Kevin Rollins. Since then, speculation has risen that the company could consider third-party distribution as a way to lift its stagnant growth rates.


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