I recently read that Dell one of the most successful computer makers and marketers is about to team up with Wal-Mart to sell several computer models. In an attempt to increase its market share and boost sales Dell has decided to partner with Wal-Mart. Is this a good strategy? The stock market share price responded closing down 1.41% to $25.94 in New York. Dell which was founded in 1984 has been struggling in recent years with slowing computer sales. The deal with Wal-Mart to sell a low priced $700 Dimension multimedia desktop computer bundled with Linux Ubuntu will begin in early June and be offered in about 3,500 Wal-Mart stores in Canada, United States and Puerto Rico. The Dell phenomenon of offering computers at the lowest price is now entering the retail sector and will compete with Hewlett-Packard, the world's largest computer manufacturer. The strength and success of Dell has been manufacturing innovation, quality components, low cost with a high profit margin. Perhaps this strategy like the "One Computer Per Child" initiative (previous Blog article) will allow more families and children to own an affordable computer and possibly lead to increased education among all.
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