Other example of Dell's arrogance can be seen on their web site. Depending on where you happen to click (home, small business, big business), you can get the same equipment for vastly different prices. This is not a way to gain customer confidence and loyalty. "You mean I paid an extra $200 because just because I said I was a home user?" Should Dell be surprised that years of tricking customers into paying a higher price so they subsidize another class of customers buying the same equipment has caught up to them?
Now that he's back at the helm, Dell should sell the company and return the money to shareholders.
Another example of this is if you order a PC without an OS.
The default configuration is slightly cheaper, but the costs of upgrading some of the components like the monitor costs more.
So when you are done configuring the PC there was no costs savings to not getting Windows.
Also, another interesting quirk is the "As Advertised" option in the "Desktops" dropdown.
You can browse deals they have run on TV, newspapers etc.
Even if you know your exact configuration sometimes it is cheaper to start with a high end preconfigured system and downgrade it, sometimes it is cheaper to find one and upgrade it.
In can take hours to find the cheapest place on the website to build your PC even if you know the exact model and specifications you need.
Additionally, some of the prices fluctuate on a day to day basis (like the stock market) so you might end up configuring a specific system from 5 different places on the site every day for a week before you decide to eventually lock in your price.
inconsistent pricing and short lived sales have eroded customer satisfaction and belief that they are getting a good price on what they buy.... and how can anyone make long term buying decisions on a Dell when only on a one day sale does the price seem fair?
I just ordered a Dell laptop this past week. What a nightmare! The reason I ordered a Dell laptop is because I wanted a Turion 64bit CPU. I can't get them anywhere else, and so I went with Dell. From my order being cancelled to their attempt to force Vista on me (I ordered the laptop on Sunday) to their rude sales staff in India (who could not undestand me) to problems with their finance department (I bought on credit for a particular reason). I can only say that Dell is getting what they deserve!
Like the article says -- HP is everything Dell is (and sometimes better)
I'm typing this on my HP Pavillion DV8000 notebook with an AMD Turion64 processor. You may want to research a little more before you say Dell is the only one with that capability.
This notebook has been the best one I've owned. It was $1200 last year while a comparable Dell 17" widescreen was close to $3000. I have 2 Inspirons collecting dust in a closet now because of this one.
I've lost all faith in Dell's ability to deliver a quality product at a competitive price. I'll shop places like tigerdirect.com and buy HPs for way less than Dell.....
Liked the description of management consultants. Was Apple No. 1 in 1990, or was it 1980? And those price comparisons last year between Macs and Dells, which showed comparable Dell models to be equally or slightly higher priced, now ring a bit hollow. Still like Macs better than Dells, though, and I've used both.
As both a consumer and business customer of Dell, I can agree with every component of this article.
For years, I kept our company away from Dell because they just didn't get business needs and tried to hock consumer equipment in a large business environment. But, they finally figured it out and we have embraced them all the way to the Data Center.
But, it has come at a price, which is a disconnect from their consumer roots. They have got to find their way back there without disconnecting from business to be able to continue to grow.
HP rediscovered their consumer roots, but have damaged their business side in the process ((hence my company's move to Dell).
It's all about agility and they both are struggling which is creating opportunity for Apple, which isn't necessarily a bad thing, but good price points have never been Apple's forte, so I'm hoping they regain their footing to keep a strong price pressure on the market.
I bought my last Dell in 1997. It came loaded with crapware, and it was buggy and unstable. I finally wiped the entire hard drive and reinstalled from a Windows OEM disk. The sleep and hibernate features never did work correctly.
Customers have long memories. Inexpensive is good, but cheap is bad.
The author would get more credibility if he get the facts straight with better research...
Apple was only "number one" in the 1990's as a personal computer brand and unit sales, it never has large business market share in the 1990's. IBM beat Apple in the 1980's
Compaq did not beat IBM with Taiwanese contract manufacturers, Compaq beat IBM by using generic parts and teaming up with Microsoft. Plus, Compaq did not spend a dime on developing operating system like IBM's OS/2.
But I do agree with the author: Consultants have their place, but they are not good at taking over and running a company in the long term.
Kind of funny. Both Brands used Taiwan contract manufacture for their product lines. Until recently IBM used Acer and I beleive that Compaq was using FIC (could be wrong on the Compaq). Both players were in bed with Microsoft. Compaq beat IBM in the consumer space by using their strong business lines to carry the price points needed in the consumer space until IBM screamed uncle.
The reasons I left dell for my purchasing needs are the bloated windows installs , the sporadic bad drivers, terrible support. I am still waiting on a replacement battery for the Inspiron 9100 and they ring me every day demanding the old one back. The upgrade paths to the GPU i was promised were unavailable when I tried to get them. i keep getting sent from department to department for an answer. All in all a very poor experience for me. I got a HP laptop recently, business machine, much better. Poor website design on HP behalf is my only complaint. So there is no way I can recommend dell. So they are getting what they deserve. I do think though they are big enough and bold enough to re-invent themselves. So best of luck to them there.
I was with a large school system outside of Atlanta and Dell was our major source of equipment. About 6 years ago I moved to Tennessee and ordered a high-end Axim, a $4,000.00 desktop and accessories ? the Axim went to the wrong address three times and then my new desk top didn't last but about 3 years ? the article is correct ? they "don't care" anymore; so making new technical contacts in Tennessee ? Dell is now out of the picture ? for me and any of my clients.
As the author says, Dell has never been the price leader... instead it has a tradition of making decent computers. As Dell cut prices in recent years the build quality and reliability of Dell laptops in particular has declined and as other companies respond by cutting prices on their hardware they do so more effectively and more profitably than Dell. An Apple laptop of equivalent performance to a Dell has a far better build quality, costs about the same as a Dell and runs Windows and Mac OS X natively...and has more profit margin for Apple in it. Among the PC laptp vendors IBM has filled in for quality where Dell has removed it and many professionals who traditionally had Dells now have IBM laptops. Add the poor Dell support to the picture and it becomes clear that quality and support are major issues for Dell to address... but this will be hard since they are now behind the eight ball and don't have cushy profit margins to cut into to improve their quality and the investors will not want to see profits suffer as Dell attempts to improve.
One thing I forgot to mention: Dell pointblank refuse to sell laptops without an OS. The sales person from India told me that I could write to Michael Dell and complain about the fact that they would not sell me a laptop sans Windows! Also the salesperson mentioned that Windows OS is a freebie! What a joke...
Dell sells millions of systems - desktops and notebook computers without operating systems - worldwide. Ask them for an "n-series" computer. "N" means no OS.
I have two Dell servers, several Dell desktops, and several Dell notebooks. Originally, these were good value/good build with good service machines. Here is what I have run into: 1.) India service - while well-meaning, these folks read a script. If you are outside the script, or know anything about PC's, you are in big trouble and will become frustrated if not downright angry. If you outsource, don't think you can get folks that know less to get by; 2.) Build quality - little things are failing on the last notebook I bought (2 years ago) including screws falling out, feet falling off, wear from palms, cracking cases, etc. It is off, and that is where Dell was supposed to be good; 3.) NO STYLE - bland, bland, bland. I just bought a notebook for my daughter from HP, it is white (like an Apple!) and very attractive styling, has well thought out multimedia, good size keys, good value (only problem is a HUGE batter that lifts the notebook into the air, stupid mistake). Given the same price and the same components, style wins; 4.)Management - I cannot agree more with the "Management Consultant" syndrome. Make the numbers look good in the short term, take your bonuses, when the repurcussions come in 18-36 months, bail and go to another company with your resume showing how you improved profits 25% (of course, no note about the long-term impact as we are now seeing). 5.)Pricing - what confusion! Like products at the grocery store, too much differentiation is a bad thing, too much choice confuses. I don't mean configuration; custom configuration has always been a Dell strength. I mean price. 6.)Investment (Research) -how about research/investment into design/style?
I have another 3 notebook purchases coming up, Dell will have to change quickly for my money to go there.
I was reading this article and a pop-up screen appeared over the article...it was trying to sell me something, some kind of survey I think, I had to close it to keep reading the article.
I should have used Greece. I'm greek myself and can testify honestly about the hairy, lumpy people of my background. Being a member does make things more palatable.
I agree with siriusproductions' observation about the "peasant woman remark." It's out of line and should have been caught by an attentive editor and slashed. Why, then, you may ask, have there been no complaints from friends of the Greyhound Bus Co.? Because, no matter what the American legal system may think, a corporation is NOT a person. A person is a person.
The lesson of this is for C-Net editors more than any individual writer: do your jobs. Read every article carefully and critically, no matter how famous or popular the writer may be. I'm a writer, and I know that we make mistakes all the time--sometimes egregious ones. That's why there are editors.
Give me a break. We can't even say something like that without being accused of racism? Aren't we allowed to have at least a little bit of humor, or do we have to be so politically correct that we can't even make an innocent comment like that?
Good article, sadly the author cannot help himself from being american. Once you can't speak the truth abouth the nigro and the kike, you can always fall back on the drka-drkastani or some other "minority" that still does not have the power to kick you out of your job.
Actually, Apple was number one in 1990-a year- before getting knocked out and at the time the idea was to build in the business arena. the idea faded but that was the idea. THey just got bowled over by big numbers. I forgot to mention too that Apple had notoriously bad forecasting, similar to Compaq.
Compaq used generic parts but that was part of the taiwanese expansion. they were the first to really embrace them over there. os/2, I think, was budgeted in a different department.
As a Dell employee I and many of my co-workers were energized by the enthusiasm Michael showed yesterday in a companywide webcast. He promised a number of strategic and tactical changes in the coming days and weeks, all aimed to restore our customer experience leadership. As Dell 2.0 unfolds, we're confident it'll have the makings of a story entitled "Where Dell Went Right."
Does this mean that Dell is going to move customer service to an English-speaking country? Like many Dell customers I've had very frustrating experiences with Dell customer service.
...their competitors have. The difference between an HP or an IBM/Lenovo and a Dell business strategy is that the former two firms have solid profit-making non-commodity basic product lines to support their sales of what has increasingly become a commodity product - the PC. To break with the trend toward commoditization of the PC will take some outside-of-the-box strategizing which we don't see any of the three major boxmakers doing quite yet. A bold new approach is required to regain market confidence in selecting an optimal boxmaker. One interesting idea I've heard proposed starts with the basics of product presentation - perhaps for example, the market is ready to embrace the first of the three major boxmakers to take their chances by omitting the header "[We] Recommend VISTA" on each and everyone of all of the firm's online and physical catalogs. It'll cost them some promotional money from Microsoft, but perhaps the market maybe prepared to pay such an edgy approach back in spades.
The first thing to do is get Dell customer service out of India, Pakistan, the PI or where-ever the hell it is. This past spring I had a hell of a time getting anyone over there to even recognize that my two month old - broken - 20" plasma monitor was even under warranty. After two weeks of phone hassles, starting at tech support ground zero each time, I had to call Dallas and personally ask for Mr. Dell before I got any attention.
Thank god it was a work computer and monitor. My Macs dont give me anywhere near the aggravation.
about Dell support over the past few years? My experience has been horrendous, and that's true for everybody else I know who's contacted Dell support. I don't personally know of a single person who would describe Dell support as anything better than 'abysmal'.
I wish my bank would bring customer service back home too!
It's not just Dell that has moved to Indian call centers, it's all the big monolithic companies. My bank (HSBC)calls me on my cell phone to tell me I've missed a payment. To start with, I can't hear them, and when I can hear them I can't understand them! Unfortunately the quick-fix culture (such as overseas call centers) is dominant at these monolithic corporations, largely because Wall Street likes quick fixes, and Wall Street owns them!
I know just how you feel. Its been along time since I have even given Dell a look. Everything they were selling was overpriced. Not by much but, you could get it cheaper somewhere else. I looked at the Canon Rebel XT and bought it out of New York. I was just looking at one of there systems to run Vista Ulimate with. With the price of parts these days I decided I could build one alot cheaper than buy one already put together. I was just looking on TigerDirect and couldn't believe how cheap a good processor was from Intel. Duo Core on top of that for 100. Just reading your article reminded me of what I was thinking yesterday.
What makes computing interesting - it's software, not hardware. Dell is a dull hardware manufacturer. Only two companies have got the marriage of software and hardware right, Burroughs with Bob Barton's B5000 and Apple. OK Apple is often seen as being too hardware centric - but why? Because PC hardware is too limited and shackled to the design of the IBM PC which was and still is an uninspiring piece of hardware. Windows too is shackled to this, but apart from that has problems of its own. Apple does software as well, which is why it generates excitement around a competent OS with very good application software and excellent UI.
Like Bill Gates, Michael Dell seems to resent this and much of his rationale in business seems to be following his desire to put Apple out of business - that is not a very good business strategy. Nor for all those who rubbish Apple in these and similar comment areas is it a very sensible computing strategy. Well it's all biting Dell and others back now.
For too long the hardware people have dictated that we buy machines that they can take a screwdriver to, but now customers are realising it's the functionality of the software - hence the popularity of iPod and why OS X is gaining ground.
This has NOTHING to do with Apple. Apple in reality doesn't compete with PC makers when it comes to hardware, aside from the Ipod which is a peripheral device.
I imagine that many Dell investors and Dell fans are hoping that Mr. Dell can do for Dell what Steve Jobs did for Apple when he returned. I think that scenario is unlikely for many reasons.
Like most great business successes, luck play a substantial role. In Dell's case, they were lucky to be in the right place at the right time. Their enterprise oriented business model came to fruition about the time of the Windows 95 launch which caused business to replace all their computers. Then only a few years later, the ridiculous "Y2K" scare initiated another mass replacement. It's been all down hill for Dell since then.
Their competitors have matched their prices and copied their business model. Although there is a steady growth in the PC sector, individuals and businesses no longer replace computers every two years like they did in the nineties. And, as another respondent pointed out, virtually all of Dell's business is PCs while its competitors can beef up their bottom lines with products in less cutthroat market segments.
Dell knows all this. Their solution so far has been to resell re- branded consumer products made by other companies. No doubt, this strategy came from the same idiot MBAs mentioned in the article. Implementing this strategy was tacit admission that the company is incapable of creating its own consumer products.
That's the rub. They have to diversify their business and become a consumer electronics company, but they are only good at one thing: developing and selling IBM PC clones that run third party software. They haven't a clue on how to develop or market anything else.
Apple was never taken seriously by enterprise customers. While it work against them in 1990, their consumer-oriented business culture and talents is helping transform Apple into a consumer electronics company.
Maybe Michael Dell can pull it off. I doubt it. But, I'm not buying any Dell shares.
Dell's customer service is notoriously bad. Ask anybody who has bought a Dell in the past five years. I'll bet when they first sent customer service offshore, somebody got a fat bonus for this. And now somebody is going to have to pay the piper to fix it.
Because they never sought to develop true R&D capability. All their products have this designed-on-the-back-of-an-envelope look to it. [http://Like that monstrous mutant mega-laptop thing.|http://Like that monstrous mutant mega-laptop thing.] Whatever innovations Dell machines feature were from the component makers and [gulp] Microsoft.
So now when they need to move beyond the commodity end of the market, they don't have anything to sell, they don't know how to design anything to sell, and so they don't have any customers to sell (to).
Manage updates with the Download App
Depending on where you happen to click (home, small business,
big business), you can get the same equipment for vastly
different prices. This is not a way to gain customer confidence
and loyalty. "You mean I paid an extra $200 because just
because I said I was a home user?" Should Dell be surprised that
years of tricking customers into paying a higher price so they
subsidize another class of customers buying the same
equipment has caught up to them?
Now that he's back at the helm, Dell should sell the company
and return the money to shareholders.
The default configuration is slightly cheaper, but the costs of upgrading some of the components like the monitor costs more.
So when you are done configuring the PC there was no costs savings to not getting Windows.
Also, another interesting quirk is the "As Advertised" option in the "Desktops" dropdown.
You can browse deals they have run on TV, newspapers etc.
Even if you know your exact configuration sometimes it is cheaper to start with a high end preconfigured system and downgrade it, sometimes it is cheaper to find one and upgrade it.
In can take hours to find the cheapest place on the website to build your PC even if you know the exact model and specifications you need.
Additionally, some of the prices fluctuate on a day to day basis (like the stock market) so you might end up configuring a specific system from 5 different places on the site every day for a week before you decide to eventually lock in your price.
This notebook has been the best one I've owned. It was $1200 last year while a comparable Dell 17" widescreen was close to $3000. I have 2 Inspirons collecting dust in a closet now because of this one.
I've lost all faith in Dell's ability to deliver a quality product at a competitive price. I'll shop places like tigerdirect.com and buy HPs for way less than Dell.....
in 1990, or was it 1980? And those price comparisons last year
between Macs and Dells, which showed comparable Dell models to
be equally or slightly higher priced, now ring a bit hollow. Still like
Macs better than Dells, though, and I've used both.
As both a consumer and business customer of Dell, I can agree with every component of this article.
For years, I kept our company away from Dell because they just didn't get business needs and tried to hock consumer equipment in a large business environment. But, they finally figured it out and we have embraced them all the way to the Data Center.
But, it has come at a price, which is a disconnect from their consumer roots. They have got to find their way back there without disconnecting from business to be able to continue to grow.
HP rediscovered their consumer roots, but have damaged their business side in the process ((hence my company's move to Dell).
It's all about agility and they both are struggling which is creating opportunity for Apple, which isn't necessarily a bad thing, but good price points have never been Apple's forte, so I'm hoping they regain their footing to keep a strong price pressure on the market.
I am pretty sure I commented on it in that article too.
Customers have long memories. Inexpensive is good, but cheap is bad.
Apple was only "number one" in the 1990's as a personal computer brand and unit sales, it never has large business market share in the 1990's. IBM beat Apple in the 1980's
Compaq did not beat IBM with Taiwanese contract manufacturers, Compaq beat IBM by using generic parts and teaming up with Microsoft. Plus, Compaq did not spend a dime on developing operating system like IBM's OS/2.
But I do agree with the author: Consultants have their place, but they are not good at taking over and running a company in the long term.
I got a HP laptop recently, business machine, much better. Poor website design on HP behalf is my only complaint.
So there is no way I can recommend dell. So they are getting what they deserve. I do think though they are big enough and bold enough to re-invent themselves. So best of luck to them there.
1.) India service - while well-meaning, these folks read a script. If you are outside the script, or know anything about PC's, you are in big trouble and will become frustrated if not downright angry. If you outsource, don't think you can get folks that know less to get by;
2.) Build quality - little things are failing on the last notebook I bought (2 years ago) including screws falling out, feet falling off, wear from palms, cracking cases, etc. It is off, and that is where Dell was supposed to be good;
3.) NO STYLE - bland, bland, bland. I just bought a notebook for my daughter from HP, it is white (like an Apple!) and very attractive styling, has well thought out multimedia, good size keys, good value (only problem is a HUGE batter that lifts the notebook into the air, stupid mistake). Given the same price and the same components, style wins;
4.)Management - I cannot agree more with the "Management Consultant" syndrome. Make the numbers look good in the short term, take your bonuses, when the repurcussions come in 18-36 months, bail and go to another company with your resume showing how you improved profits 25% (of course, no note about the long-term impact as we are now seeing).
5.)Pricing - what confusion! Like products at the grocery store, too much differentiation is a bad thing, too much choice confuses. I don't mean configuration; custom configuration has always been a Dell strength. I mean price.
6.)Investment (Research) -how about research/investment into design/style?
I have another 3 notebook purchases coming up, Dell will have to change quickly for my money to go there.
Shame on Cnet News!
Jay
Would Kanellos say that about a native woman from Kenya? What about a woman from a kibbutz in Israel? Or Greece? Or Ohio?
This is not about political correctness, it's about showing respect for people -- something the author failed to do.
woman remark." It's out of line and should have been caught by
an attentive editor and slashed. Why, then, you may ask, have
there been no complaints from friends of the Greyhound Bus Co.?
Because, no matter what the American legal system may think, a
corporation is NOT a person. A person is a person.
The lesson of this is for C-Net editors more than any individual
writer: do your jobs. Read every article carefully and critically, no
matter how famous or popular the writer may be. I'm a writer,
and I know that we make mistakes all the time--sometimes
egregious ones. That's why there are editors.
american. Once you can't speak the truth abouth the nigro and the
kike, you can always fall back on the drka-drkastani or some other
"minority" that still does not have the power to kick you out of your
job.
Compaq used generic parts but that was part of the taiwanese expansion. they were the first to really embrace them over there. os/2, I think, was budgeted in a different department.
Prices have been excellent.
We've become a nation of spoiled whiners, looking for a golden egg but not willing to pay the price.
Pakistan, the PI or where-ever the hell it is. This past spring I
had a hell of a time getting anyone over there to even recognize
that my two month old - broken - 20" plasma monitor was even
under warranty. After two weeks of phone hassles, starting at
tech support ground zero each time, I had to call Dallas and
personally ask for Mr. Dell before I got any attention.
Thank god it was a work computer and monitor. My Macs dont
give me anywhere near the aggravation.
Tom
Unfortunately the quick-fix culture (such as overseas call centers) is dominant at these monolithic corporations, largely because Wall Street likes quick fixes, and Wall Street owns them!
Dell is a dull hardware manufacturer. Only two companies have
got the marriage of software and hardware right, Burroughs with
Bob Barton's B5000 and Apple. OK Apple is often seen as being
too hardware centric - but why? Because PC hardware is too
limited and shackled to the design of the IBM PC which was and
still is an uninspiring piece of hardware. Windows too is
shackled to this, but apart from that has problems of its own.
Apple does software as well, which is why it generates
excitement around a competent OS with very good application
software and excellent UI.
Like Bill Gates, Michael Dell seems to resent this and much of his
rationale in business seems to be following his desire to put
Apple out of business - that is not a very good business
strategy. Nor for all those who rubbish Apple in these and
similar comment areas is it a very sensible computing strategy.
Well it's all biting Dell and others back now.
For too long the hardware people have dictated that we buy
machines that they can take a screwdriver to, but now customers
are realising it's the functionality of the software - hence the
popularity of iPod and why OS X is gaining ground.
Mr. Dell can do for Dell what Steve Jobs did for Apple when he
returned. I think that scenario is unlikely for many reasons.
Like most great business successes, luck play a substantial role.
In Dell's case, they were lucky to be in the right place at the right
time. Their enterprise oriented business model came to fruition
about the time of the Windows 95 launch which caused business
to replace all their computers. Then only a few years later, the
ridiculous "Y2K" scare initiated another mass replacement. It's
been all down hill for Dell since then.
Their competitors have matched their prices and copied their
business model. Although there is a steady growth in the PC
sector, individuals and businesses no longer replace computers
every two years like they did in the nineties. And, as another
respondent pointed out, virtually all of Dell's business is PCs
while its competitors can beef up their bottom lines with
products in less cutthroat market segments.
Dell knows all this. Their solution so far has been to resell re-
branded consumer products made by other companies. No
doubt, this strategy came from the same idiot MBAs mentioned
in the article. Implementing this strategy was tacit admission
that the company is incapable of creating its own consumer
products.
That's the rub. They have to diversify their business and become
a consumer electronics company, but they are only good at one
thing: developing and selling IBM PC clones that run third party
software. They haven't a clue on how to develop or market
anything else.
Apple was never taken seriously by enterprise customers. While
it work against them in 1990, their consumer-oriented business
culture and talents is helping transform Apple into a consumer
electronics company.
Maybe Michael Dell can pull it off. I doubt it. But, I'm not buying
any Dell shares.
So now when they need to move beyond the commodity end of the market, they don't have anything to sell, they don't know how to design anything to sell, and so they don't have any customers to sell (to).
Try Ubuntu :-)
sell off the assets and give the money back to the shareholders.
That was just a few years ago. Since then Apples value has risen
approximately 35,000% while Dell's has tanked.
No amount of begging Apple to use their operating system is going
to save Dell.