We have a tendency to highlight the negative when we report on news, maybe badly educated by the media. I wanted to come back on the Dell story once again to find out how was doing our flagship leader of the don’t get Dell’d syndrome.
First of all, let’s do a reality check on the battery recall issue. It’s been widening recently and Sony is really at the center of a communication crisis as now more than 7 million batteries are being recalled for replacement, according to the U.S. Consumer Product Safety Commission. The list of the winners are Dell with 4.2 million, Apple with 1.8 million, followed by Lenovo, Toshiba, Fujitsu, HP. Battery recall at Dell and Apple alone will cost more than $170 million. That’s a pretty extreme case study for all of you interested in quality impact to the bottom line. If you want to read the latest about it just go here.
Coming back on Dell, they’re handling the problem with this dedicated web site, and apparently trying to initiate a serious turnaround in their decline. What happened to their corporate blog One2one? Well first of all they’ve been changing the name to Direct2Dell for various reasons — Dell explains it here — that would give you a clue on how little prepared they were. By the way, they admire the One2one XXX site marketers SEO skills!
But the most interesting breaking news to me was the real backfire move from Michael Dell in a keynote at the Techdays on September 12. Michael is back and he’s launching Dell 2.0. Here is a Direct2Dell quote about it:
“Michael also talked a bit about Dell 2.0. He launched our Dimension products yesterday, including our first two AMD products for consumer and small business customers.” — more on this here
It produced at least one comment from a shareholder that goes like this:
“Nevertheless, the public response has been a shrug — with most commentary calling Dell 2.0 devoid of substance and the stock price remaining unmoved. In the absence, to-date, of many concrete components to Dell 2.0, the success of this “evolution” depends on the quality, creativity and discipline of management. Part of the public indifference is probably based on the unsatisfactory performance of Kevin Rollins and Michael Dell at Tech Day.” — more on this here, and Dell stock vs HP and Apple here.
I’m an optimistic and I like to focus on positive outcomes. I wish good luck to Dell for its Dell 2.0 venture but let’s make sure, message to Michael Dell’s staff, that Marketing 2.0 is not ignored anymore i.e. tell Kevin Rollins that customer satisfaction is more important than cost reduction to be a Hero at Dell.