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CH Dell Computers

Dell was moving into the large-scale server market to leverage its existing strengths in the PC market. Key challenges included differing requirements between companies leading to price wars, but Dell could mitigate these through customer-driven customization, low costs, and reducing accounts receivable and payable times. Dell also decided to offer four-hour on-site service for new server products, and it was recommended that Dell provide this service in-house using its customer resource specialists to solve problems quickly and effectively while charging for the unique service.

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KANIKA GORAYA
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30 views

CH Dell Computers

Dell was moving into the large-scale server market to leverage its existing strengths in the PC market. Key challenges included differing requirements between companies leading to price wars, but Dell could mitigate these through customer-driven customization, low costs, and reducing accounts receivable and payable times. Dell also decided to offer four-hour on-site service for new server products, and it was recommended that Dell provide this service in-house using its customer resource specialists to solve problems quickly and effectively while charging for the unique service.

Uploaded by

KANIKA GORAYA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Dell Computers:

Field service of Corporate clients


Do you agree with the company's decision to move into the large-scale
server market?

Yes

● As Dell has already captured good amount of market in PC Shipments in US as well as

worldwide of which the growth was much better than the overall market

● As Dell was the market leader in Laptop PCs it was easier for them to provide an end to end

solution Starting from Servers to PCs

● With a Excellent knowledge about Customers through Dell Direct it would be much easier for

them to identify and implement the same


2
As it enters this new market, what are the key challenges Dell should be
concerned with and how do you recommend to mitigate them?

Mitigations

● As the requirement for large serves differ from company to company, it makes Dell more competitive

due to price wars between companies and hence, there would much more focus on services provided.

● Here, Dell can leverage its Dell Direct-Customization (customer demand driven)-Low cost delivery

trifecta to mitigate these challenges.

● As per Exhibit 7, Days of Sale in accounts receivable & Days in Accounts Payable can be reduced

further which can help the company to earn extra margin and further used to provide superior service.
3
As Dell makes a push into the larger server market, it has decided to offer four-hour
service levels to support the new products. (That is, on-site service within four hours of
problem diagnosis.) Should Dell provide this service in-house or outsource it to a third-
party?

● Dell majorly tracked 3 major elements of Customer experience


○ Order Fulfillment
○ Performance

○ Service & Support

● Further Dell could use its CRSs to Solve Problems and use it as an effective way to to provide Customer

Service in least Possible Time and hence, can proudly charge for this Unique Service

4
Thank you

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