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In late 2002, Dell Computer Corporation decided to start selling “white boxes,” unbranded PCs, to computer...

In late 2002, Dell Computer Corporation decided to start selling “white boxes,” unbranded PCs, to computer distributors who then put their own or some other private label brand name on them. Do you think this was a good idea? Why or why not?

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In my view , this is not a sustainable or organic way to promote or extend the brand value by the dell corporation. In this process when Dell's reach moves only to big computer distributors then it gives a relatively low margin to Dell . If , Dell will start its own retail chain or exclusive distribution networks including whole sale , retail and e-commerce then ultimately it will increase its business operations and as well as market penetration. If, we understand the Dell's strategy at that time then it was having a flaw of being a vendor to manufacturer of the unbranded personal computers from various big distributors or agencies.

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