Posted Apr 03 2008, 04:18 PM by Kim Peterson
Customization is a big business these days. Starbucks says it can customize 87,000 drink combinations for its patrons. Whether it be clothes, cars or gadgets, allowing customers to order a unique version is becoming a successful business model.
Not so for Dell, a company who made a name for itself on its build-your-own-PC policy. This week, the company said it will focus less on the build-to-order model and more on selling pre-built versions. The switch is part of the company’s mission to bring down costs.
When it comes to computers, people don’t need an extreme level of customization anymore, executives told analysts this week. Customers are giving up the luxury of picking their own computer features and opting for cheaper, pre-made PCs from other companies. Dell’s share of the worldwide PC market has slipped to under 13% from 19% in 2006, and it has lost the title of top computer maker to Hewlett-Packard. Its growth has slowed to a trickle, while HP’s 2007 growth could hit 30%.