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2/7/2009

Case Study: Dell Hell

The impact of social media on corporate communication

Kimberly T Williams

Kimberly T Williams

1

Kimberly T Williams

Case Study: Dell Hell
The impact of social media on corporate communication

Case Objective:
The internet within the space of ten years has changed in regards to the manner in which individuals use it. In particular, the development of social media has forever changed the manner in which individuals communicate. This new evolution of social media, including social networking sites as Facebook and Twitter and activities such as blogging, have begun to show themselves as a prominent tool for not only social networking but also as an effect communication medium in the realm of business. Despite social media’s mainstream popularity, many corporations have a tendency to disregard it as a professional means of communication. As it turns out, this attitude can be detrimental. This case study will demonstrate how social media can directly impact the success or failure of corporate communication.

Executive Summary
In June 2005, Dell Inc. received some major complaints concerning its customer support services. Blogger Jeff Jarvis posted a series of rants, coined “Dell Hell”, about the Dell laptop he’d recently purchased. Jarvis’ posts caught the attention of others who

2

Kimberly T Williams

also began to lodge their own negative experiences with Dell’s customer service. It was not long before the “Dell Hell” posts began to catch the attention of the mainstream media. As a result of the bad press and Dell Inc.’s continued silence on the issue, the computer industry giant’s sales and reputation began to plummet.

Background
In 1983, Michael Dell attended the University of Texas in Austin as a premed student. However, Dell had long developed a passion for computers. At the age of 15, Dell purchased (and dismantled much to the horror of his parents) his first computer, an Apple II. As a



Cited: Albanesius, Chole. “Dell’s Consumer PC Business Struggling.” PC Magazine.com. 2, November 2007. Web. 6 February 2009. Argenti, Paul A. Corporate Communications 5th ed. New York: McGraw Hill, 2009. Print. Gupta, Shankar, “Jeff Jarvis vs. Dell: Blogger’s Complaint Becomes Viral Nightmare” Online Media Daily. 19 Aug. 2005. Web. 6 Feb. 2009. Lee, Louise. “ Dell: In the Bloghouse; A PC-owner’s Web diary of complaints about customer service has yielded heavy traffic and some near-contrition from the maker”. Business Week Online. 25 Aug. 2005. Web. 6 Feb. 2009. Jarvis, Jeff. “Dell Learns to Listen: The computer maker takes to the blogosphere to repair its tarnished image”. Business Week . 29 Oct. 2007. Web. 6 February 2009. Krazit, Tom. “ Study Dell customer rating plunges; Apple leads pack: Customer service, not products were source of dissatisfaction for Dell” Computerworld. 16, August 2005. Web. 6 February 2009. Oberkirch, Brian. “Dude You’re Getting Dell’d”. FastCompany.com . 9, August 2005. Web. 6 February 2009. www.fastcompany.com/blog/brian-oberkirch/dude-youregetting-delled 6 February 2009. 11  Kimberly T Williams 12 

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