Dell sees lot of work left on turnaround effort

By on July 11, 2007, 10:58 AM
Dell is working hard to regain lost market share to rivals in the PC business, and while the company has made progress in its turnaround efforts, it still has "a long way to go" to spur personal computer sales, founder Michael Dell said Tuesday.

"Give us some time - we are making steady progress," Dell, 42, said in the interview. "We have an enormous opportunity in front of us, but it will require some changes."
Michael Dell retook the CEO position in January after the company’s sales growth slumped. Since then, the PC maker has undergone through several changes, most notably, abandoning its 23-year practice of direct sales to customers via the Internet or phone, to start selling through partners at retail stores as well.

Dell, the world's second-largest computer maker, is putting more emphasis on product design, with the introduction of a line of PCs available in a variety of shell colors and the ultra-thin XPS M1330 notebook. The company also introduced a product line Tuesday called ‘Vostro’ aimed at small businesses. However, Dell’s turnaround work to win back the title of No. 1 PC maker is still far from completed. The company said it would dismiss about 10 percent of its workforce in the next year, in a move to cut expenses and preserve profit margins.

"We first want to be No. 1 in service and support for our customers. And after that, we want to be No.1 in profitability. I think if you do those two things correctly, you become No.1 in market share.", said Dell

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9Nails said:
The company I work for won't buy Dell even though they bid for our business each year. We don't like Dell Desktops because they use weird parts, like cages to house a hard drive without any possible option to add additional drives or power supplies that are irregularly shaped - which we can't replace cheaply after warranty expires. And when Dell's do fail, customer support is a hassle to deal with. We're much happier with our PC dealer who is local to our company will replace failed hardware in the warranty period with no questions asked. They are small enough to know us by first name and know that we have all ready identified the error as a hardware failure, and they don't try to waste our time making us repeat the same steps with them on the phone. Dell could never give us service and support like that. If they ever improve their products and support at a comparable price, we might reconsider them.
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