Word: delling
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Dates: during 2000-2009
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...heart of Dell's strategy is a belief that the much hyped digital home is about to become a reality, with the personal computer as the brain running movies, music and photos around the house. "Over the next several years, you can expect to see much of what was previously considered consumer electronics move into this digital home vision," the CEO told TIME. "And Dell will be there...
...dramatic change for Dell, long a computer-hardware maker, which earns 80% of its revenue from sales to businesses. At its headquarters in Round Rock, Texas, Dell's generals are getting used to their new role, touting themselves as the guys who will offer the lowest prices for a whole new line of products. "The battle is not joined yet," says Tim Mattox, one of those generals (otherwise known as marketing V.P.s), "but you could say we're laying the foundation for trench warfare." Consumers are going to be the winners. Although Dell hasn't revealed pricing...
...Dell's invasion of your living room is part of what promises to be a free-for-all in the $100 billion U.S. consumer-electronics market. Computer makers like Dell are responding to slowing sales by leaping into new arenas, going head to head against consumer giants like Sony. In August, No. 2 computer maker HP launched 158 consumer products, most notably digital cameras to work with its market-leading printers. Gateway, which hit the jackpot last year with a $2,999 plasma TV, plans to introduce 50 more consumer products for the holiday season...
Callers to Dell's support lines, meanwhile, were already looking to Dell for help with their consumer electronics. Their big complaint wasn't about hardware anymore but that many new digital gizmos did not work with Dell computers. "Consumers feel they haven't been well served by consumer-electronics companies," says George. "These companies always have the next hot thing, which doesn't work with the last hot thing and doesn't work with the competitor's next hot thing. So you're always in the wreck-and-rebuild stage...
...important lesson, because Dell isn't likely to produce many next hot things. The company, which spends a mere 1.5% of its $38 billion in revenue on research, isn't concerned with being innovative, says John Hamlin, general manager of Dell's U.S. consumer business. "We're not first," he says. "We just do it better. We're not embarrassed to admit it. We've come out of nowhere to be the No. 3 consumer brand in the U.S. in less than five years, while Coca-Cola has been doing it for 100 years." Of course, adds Hamlin...