Dell earnings gets dinged by PC problems

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Being the lowest cost producer has it's draw backs.

When Mr. Dell started his company selling ISA 6-pack cards for IBM compatibles he did it by being cheaper than his competition. Since that time Dell had been synonymous with low cost or "cheap" PCs and PC products. When your goal is market growth, this is a good thing. Cheap will always sell in voulme.

But when you ask consumers about "best", rarely is Dell mentioned. Being the lowest cost provider carries with it a preception of quality level. No one expects the lowest cost provider to build the "best" of anything. As Dell tries to move more into enterpise level servers they must change this perception.

I'd nomally say the place to change perceptions is in customer service, but as many would point out, customer service is not their strong suit. Remember, low profits means low funding for many areas including service and support.

If Dell is to move into areas like Televisions, entertainment devices, or other "home" use they are going to find they MUST improve their customer service satisfaction levels. No one would put up with their new multi-thousand dollar TV not working or having problems getting service and support.

My question for both these markets is, does Dell have what it takes to both understand customer service and then do something about it? Can they shed some part the lowest cost producer mentality (cost cutting in the extreme) to one that understands in some markets you don't want to be the "cheapest"? That some markets really do want a little bit of "best" to go along with the deal...

Posted by: No_Ax_to_Grind   Posted on: 11/10/05 You are currently: a Guest | Members login | Terms of Use

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