Wednesday, July 30, 2008

Sometimes Leadership Means Saying "No" ...

Saying "no" as a leader can be a smart move.

Especially if your company is attempting to take on a well-established giant.

Take Dell Computers, for example. Reuters News reports that Dell has plans to take on the ever-popular Apple ipod. From a story based on a Wall Street Journal report,

"... the music player which Dell has been testing features a small navigation screen and basic button controls to scroll through music play lists, the Journal reported."

The story recalls Dell's previous failed attempts at leveraging the MP3 market:

"[Dell's device] would connect to online music services via a Wi-Fi Internet connection, and Dell would likely price the model at less than $100, the Journal said. Dell's first foray into the music market in 2003 was a huge disappointment. It withdrew from the music-player market after its DJ Ditty player failed to make major inroads."

I am predicting that this will be another failed attempt on Dell's part. There is little to separate their new MP3 player from the ipod, except for pricepoint. The mp3 market is already saturated with players in the $50 - $150 USD range.

With little to distinguish their product, I would have encouraged Dell's leadership to have said "no" to this project.

Time will tell.