Dell's Color PCs Debut at Macy's

According to Infoworld.com, Dell, the former exclusively direct-sales computer manufacturer, introduced a line on desktops and laptops at Macy's Department store in New York on Tuesday. Dell unveiled nine new models of its Inspiron PC'S and notebook PC'S and an XPS M1330 model notebook with shells available in eight colors.

The company, which has been on a downward slide in market share and profits, is attempting a new sales model by initiating a retail blitz. Alex Gruzen, senior vice president of Dell Consumer product group, told InfoWorld.com that "the Dell of today is vastly different from the Dell of six months ago or even last week." Dell even went as far as setting up a temporary booth so that people could make orders. Gruzen continues by saying "we're here at Macy's in New York City. That alone is different for Dell, being in a department store or any kind of retail setting at all."

Dell was once looked upon by the PC market as the wal-mart of computers due to their bargain basement prices. As a result of being unencumbered by costs of retail distribution, the computer manufacturer was able to keep its prices low. Dell has not strayed far, even in the midst of a wide-spread retail distribution, with their competitive prices as its 500 gigabyte capacity desktops starts at $350 and its 4 lbs laptops start at $1300, according to Infoworld.com.

With a capitalistic symmetry, Dell began its retail roll out at Wal-mart on June 10. This represented the first time the company decided to stray from its direct sales structure. Its cost-cutting direct sales structure ,while innovative, was on a decline as Dell's competitive advantage once other computer retails began to cut cost costs as well, reports Infoworld.com. Hewlitt-Packard recently surpassed Dell as the largest PC retailer in the world. There may have been one predominant factor that helped HP pass Dell. Due to corporate reorganization, Dell announced in May that it would lay off 10% of its more than 88,000 employees.