RichardatDELL

Dell Is Indeed Turning Around

Hi Jason

Thanks for keeping an open mind and for sharing "the other side of the story" :-). We are hard at work and getting better all the time...not perfect, but listening, engaging and moving ahead. As you know, no company follows a perfectly linear path of growth, so we are growing and improving as we work around the curves in the road. We appreciate your feedback and perspective too.

Dell Wants to Create "Product Lust"? Get Beyond the Box!

Hi Jason,

Thanks for the feedback...yes, we at Dell are a work in progress. Michael Dell when he became CEO again, said the changes he wanted to put in place would take some time. This is not a short term fix and we are not in a short term game.

While you draw some product comparisons, let me suggest others.

The Vostro line is designed specifically to meet small business needs and is being received very well in that market. Vostro delivers power and speed and lots of guts for the small business heavy lifting...its not suppose to compete with the Macbook air. They are different markets.


So far, folks who are interested in tablets have been pretty impressed with the features that our Latitude XT is delivering. The XPS One is being called by many the new category leader, replacing Mac leadership in this all in one field and many consider the XPS One to be that new standard.

Meanwhile over at Laptop magazine, they think the new Dell laptops are about a lot more than just color and personal choices, but also lots of guts and power. They seem to think the product turn around is better than you imply.

"So let’s review: top-notch screen, keyboard, performance, design, portability, and features, all for under $2,000. Sure, it’s not as thin as the MacBook Air or ThinkPad X300, but the XPS M1330 has more features than the former and a much lower price than the latter. This is the ultimate sweet-spot notebook for consumers." www.laptopmag.com/revi...

But you know, those are just a couple of the current products that are breaking solid ground and delivering results. We are also moving aggressively to deliver new services and offerings for our business customers while making a a host of other changes in how we do business and connect with customers to deliver technology that people want and need, in ways that are simple and useful.

Ultimatley, we are very focused on you, people like you and listening and learning from the kind of feedback you raise here. While the products I mention break some new ground, they are also the beginnings of more to come.

So I hope you will wait and make all your judgments after more changes start to see the light of day...and then you can determine, if in fact there is a whole lot more to this company Dell than you might be drawing (early) conclusions about today.

Dell In China: The Channel Is Not the Product

Hi David
Left you a follow up comment on your blog. You are correct, there is a lot underway at Dell that differentiates us on products and services for customers in China and globally...with more to come. My complete comments are here:

siliconhutong.typepad....

Will HP Follow Dell With Ubuntu Linux PCs?

Hi Joe,
thrilled to read that after a few days of testing your no longer a skeptic about Dell-ubuntu...and glad you are not alone. We are receiving similar feedback, so this is great to hear.

Where's My Dell Ubuntu Linux PC?

Joe

dont think the demand has been stronger-than-anticipa... although it has been solid.

Where's My Dell Ubuntu Linux PC?

Hi Joe

Your order is scheduled to ship today and I have a fedex routing number if you want it. Sorry for the delay

Why I'm Finally Sold On Dell (Again)

Hi Joe
Thanks for the vote of confidence, from the VAR, Linux and customer perspective. We really appreciate it. You are correct we have our work cut out for us and continue to focus focus focus on customers and improving our relationships with them.

Your feedback and support are appreciated...we will work hard to maintain your confidence, and, hopefully, exceed your expectations.

Is Wal-Mart The Answer To Dell's Problems? Not Likely

Hi Chad,
left you a more detailed response on your blog post. However, think its fair to say we are very focused on regaining Dell's leadership in customer service and support, at the same time as we extend the availability of our product through the retail channel for consumers and through working with partners and VARs in the business-to-business markets.
Michael Dell and the new leadership team at Dell have a series of initiatives underway to regain market leadership for Dell, and this is just some of the beginnings. While it won't happen overnight, we are working hard, listening to customers, and putting things in place to reinvigorate our business and forge ahead. As we indicated in terms of selling computers in Wal Mart...stay tuned.

Kudos to Dell For Offering Windows Alternative

Hi David

Thanks for Kudos! There is something very exciting about it, especially since this is in response to the community feedback on Dell's Ideastorm. We, too, hope the market repsonds ;-) and the demand comes through...its not our intention to let it disappear on some options page. Thanks again

Dell: Beware of Anything 2.0

David,
Thanks for the follow up and for you and your readers I have posted additional comments on your original blog post. siliconhutong.typepad....
However, glad you are willing to be patient because we believe Dell 2.0 with further our customer connection and result in a stronger Dell. To your points: yes it is too early to tell. You suggest the importance of admitting problems, well we have admitted that we face challenges and are moving to overcome them.
We are very much listening to our customers and reconnecting, as demonstrated by our direct2dell blog, ideastorm, the impending addition of Linux on select laptops and desktops, the availability of XP and some of our new products...with more to come.
Consistent with our history, we learn from the curves in the road and come back stronger and better.

Dell Prepares to Polish Its Brand, Hires First-Ever Chief Marketing Officer

Joe

Thanks for the feedback. We appreciate your commentary and perspective. Rest assured we are moving forward on several fronts...you mentioned 10 and I think Michae l Dell's list is longer than that. So perhaps as we go through this period, hopefully we will meet your expectations.

No business follows a perfectly linear growth path...and so as we hit a bump in the road, we expect that our histsory of learning (after just 22 years) and coming on stronger and better will serve us well at this juncture.

Again, appreciate the feedback....hopefully that next purchase will be another Dell.

Consumer PCs Beyond Apple: HP and Gateway are Hot, Dell is Not

Appreciate the perspective and data in this article. At Dell we have a number of actions underway, as you know, to restore consumer interest in Dell products. perhaps most noteworthy is the range of new products we have launched since the survey and at CES, that are receiving rave reviews. For example:
-our XPS M2010 is garnering attention having won a CES 2007 Best of
Innovations Award. Businessweek voted positive, calling it a "stunner." Laptop Magazine gave it its
editor's choice award, calling it a "splurge-worthy status symbol." And Popular Science gave it the Best
of What's New Award in the computing category. PC Magazine called it a visionary concept and bold
design.
-the Dell Home media suite is the first PC tuner capable of receiving digital cable, including premium high-definition programming, for example, HBO or ESPN.
-Display Search recently reported that Dell remained the leading provider both here in the US and
worldwide for computer displays. We have introduced something even cooler: the Dell, ultrasharp,
27-inch, widescreen flat panel with a maximum resolution of 1920 x 1200, an incredibly rich
color experience. In fact, this monitor can display a 92 percent color gamut compared to most monitors which function at about 72%
- the XPS 710 is getting rave reviews for speed, sleek design and low noise level...not to mention its special cooling system and high-end features for gamers.
-the ruggedized notebook is another new market entry gaining early traction since your survey took place

The breadth and depth of Dell's product line has been extended and continues to be revamped, so it will be interesting to see how the survey changes over the next few quarters.

Michael Dell: Do As I Say, Not As I Do

Hi David

I think you missed several items in your article, so I would like to provide you and your readers with some clarification and corrections.

First, lets correct your interpretation of the reduction in the number of people reporting to the CEO. This has nothing to do with reducing costs. It has everything to do with unifying our leadership structure and reducing bureaucracy. Michael is empowering teams with responsibility and accountability and ensuring that Dell Inc. makes decisions faster and closer to the customer.

Second, to your questions about compensation and asking whether the halting of staff bonuses applied to other types of compensation. There will be changes to compensation such as above market raises, shortening the vesting time for stock awards and a move to restricted stock units.

As for the company-paid expenses relating to personal and residential security, we believe that Michael Dell’s personal safety and security as Founder and leader are of vital importance to the company. We make no apologies for the Board’s determination that Mr. Dell is protected at home and abroad.

Dear Michael: Dell 2.0 Needs a Strategy

Hi Patrick

wanted to thank you for the input, as we review various options and all work together on clear priorities and a focused strategy. Your input and perspective is appreciated.

Tommo, appreciate the translation. However, thats not the way we at Dell see things. In fact you are wrong. Michael is energized to be back in the CEO role and so is the organization. We have come from behind before and every time, stronger and better. For a 23 year old company, we have always learned our lessons and moved forward. No company has a perfectly linear growth path, and so we move through this curve...like the rest, learning and maturing and getting better all the time. It how we became number one.

Dell: The Problems Began In China

My comments were originally posted at David's original blog post. They are:

The Direct Model is Not Process. Its about Relationships and Customers.

Appreciate your interesting perspective and your focus on Dell's advantaged cost and efficiencies of the supply chain. However, you missed the point about what is and is not replicable and what is or is not a competitive advantage.

Dell's competitors are not free to act only in the customers’ interest because they must factor in value for their resellers and distributors. That means the customer is third in line. Not so at Dell.

Dell, its direct model and the competitive advantages that made us number one and a global competitor rest in more than simply efficient ordering and product production processes. The direct model is not about processes. It’s about relationships.

Dell 2.0 is about reinvigorating and extending the competitive and non-replicable direct 1:1 relationship with our customers to provide the best customer experience, build a strong global services business and ensure our products deliver the best long-term customer value.

In addition, while we are investing in our business for the long term, competitors have announced they will continue to eliminate costs to maintain their ability to compete with Dell; other competitors are not making much or any profit because they need to sell products at a loss. Perhaps they have a ways to go before we can suggest Dell is easily replicated?

With respect to China, based on our Q3 earnings, the Asia-Pacific and Japan region gained 1.5 share points year-over-year to further strengthen our #2 position. The region’s growth was led by 33 percent unit growth in China, where Dell was the fastest growing among the top five vendors in the region, growing at three times the growth rate of the industry.

Just some thoughts you might want to factor into your analysis