Michael Dell Returns to CEO Role at Dell

head_dunce writes "It looks like Michael Dell is jumping back into the big chair at Dell because his company is slipping under the direction of Kevin Rollins. I wonder if they should be looking outside the company for new ideas, or if going back to basics is what needs to be done?"

Re:Quid Pro Quo?

[Whiney Mac Fanboy]

Let me preface my reply by saying I've never bought Dell and don't like Dells (but nor particularly dislike them).

But the business model you describe of butchering your suppliers sounds like wal-mart. And they're not going anywhere.

Dell's problem is not their business model, but others copying their business model. (apple?)

Re:Quid Pro Quo?

[djupedal]

"...others copying their business model. (apple?)

Back in the day, Apple had the lead by being able to shorten the time between when a product was made and when it hit the buyer to as little as 8 days in the pipe. This amazed Compaq and HP, who found it hard to get below 15~17 days.

Dell copied Apple, and when things changed and the typical increment that most enjoyed went back up to around 12 days in the pipe, Dell, due to the pressure put on suppliers, managed as little as 5 days. Now, everyone is selling commodity and short pipes have a different weight than just a few years ago.

And now we have Dell, stuck in the old ways, no longer willing or able or too proud to follow others, perhaps due to the hollowing out model being their core method, and wham....face down on the mat. That makes them a one trick pony in my book. Bye, bye Dell!

Dell's problem

[should_be_linear]

There is little of R&D and added value in Dell products. After all, building a PCs and pre-installing HDD with useless crap is not rocket science. I don't see much oportunities for Dell in the future, unless they invent completely new product-area compatible with internet-world we all live in already. They are basically in the same position as pre-iPod Apple. My take: SELL.

Re:Improve Customer Support

[Speed Pour]

The first priority of Michael Dell should be to improve Dell's lousy customer service and in-source it to US again.

Yeah, he's one of the earlier adopters of outsourcing customer support. I hate to say it, but I seriously doubt he's going to reverse that particular decision.

I worked for Dell briefly, an experience I'll be happy not to repeat. The entire company is very shareholder-centric. I really doubt we're going to see a terribly different Dell from what we saw about 5 years ago. They are still going to build dirt-cheap machines for the 'lowest common denominator' people and they are still going to operate with the previously mentioned 'scorched earth' policy towards their hardware suppliers.

I'm pretty certain that Michael Dell is being brought back to keep the stockholders happy and to attempt to restore the image. Few people will remember that he made the company the way it is, and I feel that Kevin Rollins is taking the scapegoat role.

Long gone are the days when Dell computers were the reliable ones that you spent a couple extra hundred on because they really were that good. This is the reason Dell bought Alienware, to try to regain the image of quality machines.

Also, IMHO, I have to agree with another poster as well, most Dell-branded products were pretty horrible. Axim line was alright and the LCD's were pretty good, everything else (including the computers) was pretty poor. Again, just my feelings on 'em...

Re:Quid Pro Quo?

[suv4x4]

Jobs also said about Apple "If I were running Apple, I would milk the Macintosh for all it's worth -- and get busy on the next great thing. The PC wars are over. Done. Microsoft won a long time ago."

Funny right.. and this is exactly what he's doing. On his last presentation they dropped the "Computers" part of their name, and it's more and more obvious they are MOVING (not EXPANDING) into consumer electronics.

The Macs are now PC's which can run Windows as well... Maybe we'll see in few years OSX as a platform running INSIDE Windows Vista? You never know.

I'd say, Jobs is pretty consistent with what he said in all cases.

The register analysis

[SnowWolf2003]

The register has an interesting analysis on what this actually means. http://www.theregister.co.uk/2007/02/01/dell_brain _one/ [theregister.co.uk]

In summary, nothing, as Michael Dell has been actively involved in all decisions anyway, and is at least equally responsible for Dell's downfall.

Re:Quid Pro Quo?

[Anonymous Coward]

That's stupid. That's just a variation on the old Wal-Mart is killing their suppliers so they are evil routine. Samsung is a billion dollar company with very smart people running it, as are most of Dell's suppliers. If they can't negiotiate workable deals, they don't belong in business.

Distorted Visions

[Jekler]

I think one of the reasons Dell has been slipping (and I believe it has a lot to do with many corporate failures) is that the executives forget what made the company successful in the first place. The company has become so wrapped up in acquisitions, promotions, and partnerships that they forgot all about building computers. They no longer ask themselves "Which components would make this PC powerful and affordable?" Instead they ask "Which components can we build a computer from, using only our partners' components, that will not compete with any of our other divisions, and is consistent with this month's slogan?" It's a lot like Microsoft. At a certain point they got so wrapped up in their ISP (MSN), web sites, content portals, partnerships, search engines, the whole idea of building an actual Operating System was completely beyond them. For all the jokes people made about Windows back with Win 3.1 and Windows 95, all of it would have been forgotten if they had kept their eye on the prize. Instead, they get distracted by every trend, buzzword, and internet start-up that happens by. Dell has the money, reputation, and manpower to build great computers. Unfortunately they lack the all-consuming vision that makes a company succeed to start with.

Re:Wish Dell or someone would go where HP used to

[digitalhermit]

Quality costs money, but you know what? I buy for the long term. I'd rather pay 2-3x up front for something that'll last a lifetime. I'll do that even for equipment that might be obsolete in 5 years because at least I'll know that it simply won't fail in those 5 years because it's built right.

I understand the sentiment, but I won't pay much more at this point. I turn over laptops every 18-24 months, and *for my needs* it's just not worth putting too much extra in for a better built unit. Others will of course have different needs. There are things that I miss on the cheaper units (built in keyboard light, touchpad and button mouse, decent speakers) but if the unit is $500 I'll live without.

Dell Hell

[chromozone]

I bought my first Dell product in November and I could see Dell had some real problems. I bought a well reviewed and highly regarded 2007WFP monitor for $400. After buying it I read that Dell is using a "panel lottery" and they swapped out the Philips S-IPS panel for a Samsung S-PVA that is quite inferior. Many people were upset by this because the swap really made it a different monitor since S-IPS and S-PVA have different characteristics and many photographers and graphics pros seek out the S-IPS. Dell's began to hide the panel info and told people complaining in its forums that as far as Dell was concerned "a 2007WFP was a 2007WFP".

I finally sent my monitor back to Dell but arranging that return was nightmare. From one service rep to another they lose track of issues. Mailing labels to be sent never were; emails they were to send me were never sent; credits due were never sent. I have 2 notebook pages of case numbers just for a monitor purchase and return. It's been six weeks and still I have not been sent a credit even though reps I call say it has. I can't get anyone to follow through on the simplest task.

I don't think Dell is a bad company but its obvioulsy a real mess over there.

Re:Quid Pro Quo?

[Lumpy]

Here's what happens. Most corporations use DELL or HP for their IT supplies. Some of the enlightened ones use IBM or other sources, but most have fallen to Dell's sales people's promises and selected Dell as their supplier for IT.

Here is the problem, when I worked at my last job we would buy Lattitude laptops by the thousands. Yes, an order of 1000 or more laptops is considered normal. The pricing we would get would be silly. WE were paying what you would pay if you went online and bough the same item in single quantity. sorry, but if I was buying 1000 laptops I would demand that I would get pretty darn close to reseller prices and not $10.00 less than full retail.

Dell has good sales people that make sure they keep their marks, I mean customers, in check and take them out for dinner/lunch on a regular basis. I used to have to fight to get Xerox laser printers or HP servers in the building because the Dell sales guy had the CTO so deep in his pocket.

Dell wins because they have an incredible sales team for the big cooperate accounts. THAT is how you win. Not better product, not world class service. Incredibly good sales people.

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