Dell has been the longtime leader in the custom built, direct to consumer segment of the PC business. HP recently surpassed Dell as market share leader. In response, Dell has begun experimenting with opening retail stores to counter HP's presence in consumer electronics stores such as Best Buy. Which statement accurately reflects this situation?
A) Because Dell is a $56 billion company, opening a few retail stores is a tactical action.
B) HP's decision to focus its attention in markets where Dell was absent means HP was a late mover.
C) While Dell offers built-to-order computers and HP focuses on sales of pre-built machines through retail distribution, the firms are direct competitors.
D) Because Dell has not previously operated its own stores, it is a first mover in retail PC sales.

Question

Quizplus · Accepted Answer

The statement that "Dell offers built-to-order computers and HP focuses on sales of pre-built machines through retail distribution" highlights the difference in primary sales strategies between the two companies. However, both companies are direct competitors in the PC market, and Dell opening retail stores to counter HP's presence in consumer electronics stores reflects this competition. The other statements are either not accurate or not relevant to the situation.

Dell Has Been the Longtime Leader in the Custom Built