Nobody thought the direct business model would work. But work it did, and spectacularly. Until it didn’t. And therein lies the tale.

Heather Simmons
About This Quote

In the early days of the personal computer industry, nobody thought that a direct business model would work. In other words, no one thought that companies could make money from selling their products directly to customers instead of through a middleman such as a dealer or wholesaler. The idea seemed preposterous. In fact, many people thought that direct distribution was a bad idea because it would bypass all the dealers and wholesalers who had been so instrumental in building up the PC industry.

But they were wrong. The direct business model worked spectacularly for a long time, until it didn’t.

Source: Reinventing Dell

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