Dell said that he will pulling back from the low margin, low end products to focus on high margin products. Also they are focusing on consulting servies. I think they will also focus on cloud services. WAIT, I HAVE HEARD THIS BEFORE...IBM, HP and now Dell.
Are US companies facing a tough competition from the Asian companies in the low end product that they want to move away? Or there is just not enough room to grow in the low end segment? Also, when these companies will realign their strategy and move to the high end and high margin products then do we expect a vaccum that would be filled by Asian companies?
Well, that topic has been discussed several times and usually vendor's position was (honestly, as per what understood) "while our products are cheapest in the market, you can't expect also best support". Do people agree with?
Dell's customer service is not that good. Every time, the same situation no body can help and so they transfer you to a thousand people, and you spend hours on the phone..many consumers have switched suppliers in the past year due to poor customer service experiences..Dell has to improve alot in customer service..
That's true since computer hardware has become a mature technology. It's likely they can rely on Intel and other microprocessor makers to drive board layouts.
@Ariella, but it seems as if improving customer service is pretty low on their priority list... a lot of the customer service bandwidth is likely eaten up by people who bought those low-end machines: they're exactly the type of people that probably require additional help.
Anyhow, Dell has evolved and changed over the years... but they're not exactly re-inventing themselves completely. And to some extent, they don't need to do anything THAT drastic...
Yes, another area they should look into is improving customer service. I know people who have waited on the phone for an hour trying to work through an issue.
Ariella, Investors are also in wait-and-see mode. Dell's stock price fell 3.2 percent today although that may not necessarily be a reflection on the company as the broader market indices also declined. What's certain is that Dell's story was once captivating. At one time it was known as the King of build-to-order and online/phone sales. That period has long passed. The company no longer has a compelling story such as Apple's for instance (which company does?) but maybe the increase in R&D will propel it to that fame.
As you say, Bolaji, we'd have to see more of how it operates to judge whether or not Dell has succeeded in transforming itself. But increasing the investment in research and development, certainly, is a good start and a necessary move in the direction of innovation.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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