Application of the Dell direct model to the AC inverter market

In this paper, the author examines the application of a direct-business model to a predominantly indirect market. Currently, the majority of inverter sales are completed through an indirect sales channel, utilizing the services of distributors. After careful analysis of the inverter market and a leading direct-marketing manufacturer in the electronics industry, the author has developed several conclusions that maximize the effectiveness of sales efforts in the inverter market. Most important to the sales success of inverter manufacturers is the willingness to identify areas of outsourcing and to identify partners for such efforts. A careful distinction between OEM and end-user sales must be made. Ideally, a partner that can directly market to OEMs without interference from distributors should be identified.