Dell, Inc. (DELL) has been beaten up verbally recently, and its stock price has plummeted as well. The company's latest quarter was nothing to write home about, and there is talk that Dell's edge has long since been dulled and the company is a lumbering giant unable to do anything more than sell and service commodity products. The recent Perot Systems acquisition is more a defensive move than an offensive one, for example. So, is Dell floundering? In many ways, definitely yes.If a recovery in the PC market is indeed underfoot, does Dell risk being left behind as Acer continues beating up on it and Hewlett-Packard (HPQ) marches forward with its $100 billion annual revenue machine? Dell's mainstay is business sales, and a 23% drop year-over-year to large businesses won't sit well.
What is Michael Dell to do? Entering the uber-competitive smartphone space will likely be a blip for the company. But, the company could continue to maintain itself with corporate sales even as it gets beaten to a pulp in the retail PC space. The U.S. economy is recovering and PC sales to both consumers and businesses will recover along with it. If Dell sees another quarter of sluggishness, investors will be asking for blood. Another few quarters and they'll be screaming for it. By then, Dell's turnaround (which never really started save for entering retail) will be stuck in reverse.
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Reader Comments (Page 1 of 1)
11-23-2009 @ 6:42PM
Brian Faulkner said...
I worte this letter to Michael Dell back in January 2004 and it sure rings true today:
January 20, 2004
Michael S. Dell, Chief Executive Officer
Dell Inc.
One Dell Way
Round Rock, Texas 78682
Re: Customer Number 037169503
Order Number 556976091
Dear Mr. Dell:
Unfortunately I am forced to write to you again regarding my very negative experience with your company. I hope that this letter reaches your desk on not that of an assistant or someone one in Customer Care since you really need to know what is happening with the operation of your company.
In my first letter to you, dated December 2, 2003 (a copy of which is enclosed), I indicated that I had made my first online purchase at Dell (two 19-inch LCD monitors) and had experience bad customer service. Now the following has happened:
1. I received an e-mail dated December 17, 2003 from Shelley L. Baker of your company, apparently in response to my prior letter to you (enclosed).
2. On January 5, 2004, I send an e-mail to Ms. Baker about the repeated delays in shipping and the attempt to cancel my order if the company did not hear back in two days.
3. My order was repeatedly delayed with a most recent projected shipping date of January 7, 2004 (this order was placed on December 2, 2003). I confirmed this anticipated shipping date with an e-mail from Ms. Baker dated January 6, 2004 (enclosed).
3. Now after all this waiting, I checked with the company website on September 7, 2004 (the anticipated date of shipping) and I noticed that that my order had been cancelled. When I called your company and spoke with three difference persons in Customer Care and Ordering, no one could tell me why my order had been cancelled.
Mr. Michael S. Dell
January 20, 2004
Page 2
4. On January 8, 2004, I sent an e-mail to Ms. Baker indicating that my order had been cancelled (enclosed). On January 9, 2004, Ms. Baker responded with an e-mail regarding the cancellation. On January 14, 2004, I responded to Ms. Baker with an e-mail to set the record straight, as well as to accept her offer regarding the monitors.
5. On January 15, 2004, I received an e-mail from Ms. Baker withdrawing the previous offer and making another one. I responded to her e-mail canceling my relationship with Dell.
It is difficult for me to understand how your company has been so successful when I (and others, as set forth below) have had such a negative experience. I have read that your company makes good products and provides good customer service. Obviously, the second has not been true in my case. I have ordered from other companies online, such as Epson, and have had nothing but positive experiences.
I have enclosed some customer reviews about your company from two different websites; they are representative of many negatives ones that I have seen at several websites recently (unlike positive ones from two years back). If I were you I would be truly concerned about what is happening. The American business landscape is littered with the remains of companies that have provided poor customer service; your company, unfortunately, is one that is heading in that direction.
Sincerely,
11-24-2009 @ 7:08AM
Lee said...
You can't understand Dell Customer Service half of the time. Most of them talk with such a thick accent you can't understand what they are saying. Then their solutions are always "REFORMAT". They can't fix anything.