Dell Imaging Business Strategy and Partnership Proposals
1. Imaging Business Strategy Background & Challenge: Dell’s ImagingBusiness(Printers, Ink & Toner) was at a clear stagnation point. Share was decreasing and margins were eroding. The Product Road Map had no game-changing items in the pipeline. How could Dell realign its products and people to compete more profitably in this space? Strategy & Results: We proposed that Dell focus on the expanding ink & toner aftermarket and focus more specifically on a recycled, inexpensive and green product offering to compete directly with HP’s high margin OE offerings. We submitted a design for a new brand of recycled ink cartridges that played directly into this strategy. The product (NextLife Ink by Dell) was funded and produced and is now being sold by Dell in the retail market.
2. Staples Easytech Proposal Background & Challenge: Dell was seeking a retail entry point into the lucrative PC services market. Dell’s existingcredibility as a service provider was average at best. How could Dell gain share against established organizations such as Geek Squad (Best Buy) and Firedog (Circuit City)? Strategy & Results: We proposed that Dell attempt to partner with Staples (Easytech) to gain a retail footprint. Staples could then leverage Dell’s branding in stores. Although Dell and Staples did not reach an operating agreement, Staples did move forward with a significant Marketing and Operational push to grow the Easytech brand in its retail stores as a result of this proposal.
3. LTG Acquisition Integration Background & Challenge: Dell had recently acquired a company called ASAP software. ASAP had a division , License Technology Group (LTG), that specialized in reselling 3rd party Publisher branded software through multiple channels. What parts of this business did Dell want to retain? Where should the financial and human resources be focused for growth? Strategy & Results: We first analyzed the existing pieces of the business and determined that many parts of this business were not in Dell’s core competency, were losing money and consuming resources ineffectively. We immediately moved toward closing down these efforts and reappropriating these resources. In addition, we recommended that Dell focus very specifically on the Downloadable software products. Dell has since began selling these software titles very profitably through their Dell.com site via software download. The significant cost savings generated by the exited businesses was used for additional funding.