This management case study briefly discusses Dell’s channel strategy and partner program introduced to recapture its lost market leader position. The case further highlights how Dell has successfully transformed itself from its direct-sales-only mantra to building a successful
In January 2007, Dell had lost its No. 1 position in worldwide PC shipments to Hewlett-Packard Company (HP). In 2011, Dell reported the largest revenue increase in the company’s history when it reported its results for financial year 2011. Within three years, Dell had successfully transformed itself from its direct-sales-only mantra to building a successful reseller network.
Dell has probably witnessed more changes in its business model than many other companies have. Dell is now engaging more with channel strategy and is on a channel-hiring blitz seeking ways to improve working with channel partners. Dell is making bigger investments in the channel with new innovative channel sales initiatives. The Dell channel business now amounts to about 33 percent of the company’s $62 billion in annual sales in 2011.