Dell: Part 2

Originally there was not going to be a Part 2 to my original pontification of Dell's 54% revenue drop.  But, as if I needed to be proven right, last Tuesday on the Fox Business channels morning show, The Opening Bell, Alexis Glick, Charles Payne, Shibani Joshi and Ashley Webster opined about Dell as they see it.  So what did I hear from the experts on FBN?  All the buzzwords that got Dell into trouble in the first place.

• Dell may be a one-trick pony - As if this is bad?  As we saw in the last post, Dell was the market leader and highly profitable when it was a one-trick pony.
• Diversification - What?  They can't be serious.  Dell is diversified.  They sell everything from computers to televisions and almost everything in between yet their revenues dropped 54%.
• More distribution - Dell does have extended distribution in retail stores; do they need even more?  Maybe they should re-open their mall kiosks since those did so well.

This is a classic case of business management trying to expand the Dell brand to mean more things to more people, when they should be looking at contracting it.  Confucious said, "Man who chases two rabbits catches neither."  How many "rabbits" will Dell continue to chase before they figure it out?