Corporate *******?Getting a contract to have the largest retail outlet in the country as one of your vendors isn't what I would call corporate *******....but perhaps my understanding of economics and yours do not quite mesh...
Bingo!
And the monster machine that is called Marketing marches on...
Hate to agree with the crowd here...
Wall Street agrees with them as well.
Dell's competitive advantage lied in thier ability to synthesize mass production with customization. No easy feat. By mass marketing to Wal-Mart, they are essentially abondoning that business plan, to a small degree.
Unlike most of Wal-Mart's suppliers, Dell operates independantly by also selling direct. (Digital Designs also does this. )If wal-mart squeezed too tight, then Dell would simply pack up and move.
Some analysts see this as the beginning of the end for Dell, as they do not have the corporate culture nor expertise to thrive is mass market retail sales. They also do not have the cost cutting ability of competitors such as HP or Lenoco (The Chinese company that bought IBM's PC building businsess, I may have spelled it wrong) . Dell cannot compete on those terms.
Personally, I feel that this is just another channel of distribution for their product. You don't impulse buy a custom computer from Dell. However, you might see a new flashy, screen at wal-mart and think it may be time for an upgrade.
It is far too soon to tell.