Dell's New Lineup

Dell introduced its new lineup at Consumer Electronics Show (CES) on Jan. 9, 2007, where it unveiled the Dell XPS 710 gaming desktop, calling it a machine for "serious gamers who want to push performance beyond tested limits." The machine features a high-tech cooling system that mimics a car radiator and uses components similar to those used in space shuttles. Dell also announced the Home Media Suite, a bundle of products designed to connect the television, PC, and other electronics. The package includes speakers, a Webcam, a 27-inch flat-panel monitor, a printer, and other related equipment and software--all aimed at making the computer a hub of home entertainment. Some analysts are pessimistic on the growth of Dell's non-PC business, particularly in the competitive blade-server area. Some analysts are also concerned that Dell sales will drop this year due to Vista (Microsoft's new version of the Windows). That's partly because corporations may be slow to purchase new PCs that use Vista, as workers are more comfortable and wring more productivity out of existing systems. The upshot: "Dell should see little benefit from Vista this year,"

A company may opt to expand its lineup for the reasons such as: 1) to gain access to new customers (which offer potential for increased revenues, profits, and long-term growth). This is especially the case when the traditional lineup of products becomes mature. 2) To offer broad product differentiation by doing constant innovations. In most cases in order to stay ahead of your competitors-continuous innovation is necessary. The innovation process must start by uncovering unmet customer needs and trying to meet them. The differentiation strategies of a company fail when customers see little value in the unique attributes or capabilities of a product.

I think that Dell is in the right track by unveiling the new product line, because it is a good attempt to catch