Group Discount on Computers

The guys over at Zeus Jones found out about Dell Swarm, a group buying program launching in Singapore.

It’s a website that will offer the bulk price on a computer if enough people agree to buy it. Right now it looks like it’s only running in Singapore. I think this is an interesting innovation in their sales channel, because in Asia group buying is already an established practice. The problem is people head straight to the stores instead of going to the manufacturer. By cutting out the middle man, Dell can offer an even better price, making it a more lucrative deal for their consumers.

However, if you've browsed through Dell's annual reports, you'll find that they have identified their lack of retail presence as a fundamental weakness in their business. It makes sense because they have prided themselves so much on selling direct to consumers since their inception. It will be interesting to see how this program will affect their relationship with retailers.