Dell Computers Case Study
1. What are the key challenges DELL should be concerned with as it enters the large scale server market?
In the case, Dell Computers is currently seeking to enter the large scale server market. Companies such as Hewlett-Packard and IBM are two of the leaders in the large scale server market. These companies are offering various on-site field support options which range from a 24-hour turnaround to a 2-hour response time. IBM has experience within the large scale server market and has 135,000 consultants to help them improve customer satisfaction.
Some challenges for Dell in entering the large scale server market include customer service time frames, inventory challenges, and the need for increased level of employee skills and knowledge. Dell has proposed that it will offer on-site service within four hours of the customer problem. Dell says that they will offer the four-hour response time no matter where or what the problem is. This will be challenging because a customer that requires on-site response could be located in a rural area and it could be impossible to get a technician on site within the …show more content…
For example, Dell’s brand image of extraordinary customer service could be diminished if the outsourcing partners don’t meet customers’ expectations. Outsourcing partners could also demand better contract terms in order to agree to meet the four-hour service response time. That could potentially hurt the company financially and force Dell to lower costs elsewhere and potentially lay off workers. There is also a risk that the customers wouldn’t trust the outsourcing firm, which could lead them to switch to a competitor such as IBM who has an established in-house service operation. Lastly, there are also some internal risks in outsourcing as well. For example, valuable customer information could be lost in a third party relationship because Dell would not be getting direct feedback from the end
In the case, Dell Computers is currently seeking to enter the large scale server market. Companies such as Hewlett-Packard and IBM are two of the leaders in the large scale server market. These companies are offering various on-site field support options which range from a 24-hour turnaround to a 2-hour response time. IBM has experience within the large scale server market and has 135,000 consultants to help them improve customer satisfaction.
Some challenges for Dell in entering the large scale server market include customer service time frames, inventory challenges, and the need for increased level of employee skills and knowledge. Dell has proposed that it will offer on-site service within four hours of the customer problem. Dell says that they will offer the four-hour response time no matter where or what the problem is. This will be challenging because a customer that requires on-site response could be located in a rural area and it could be impossible to get a technician on site within the …show more content…
For example, Dell’s brand image of extraordinary customer service could be diminished if the outsourcing partners don’t meet customers’ expectations. Outsourcing partners could also demand better contract terms in order to agree to meet the four-hour service response time. That could potentially hurt the company financially and force Dell to lower costs elsewhere and potentially lay off workers. There is also a risk that the customers wouldn’t trust the outsourcing firm, which could lead them to switch to a competitor such as IBM who has an established in-house service operation. Lastly, there are also some internal risks in outsourcing as well. For example, valuable customer information could be lost in a third party relationship because Dell would not be getting direct feedback from the end