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Advice You - Dell: A Brand in Flux?
For years, Dell has enjoyed one of the strongest brands on the market. Lately, however, the giant PC maker has been taking some real heat in a number of blogs and consumer affair sites. In fact, a quick browse of sites like My3cents.com, Ripoffreport.com, ConsumerAffairs.com and BuzzMachine.com will turn According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product up multiple negative posts and comments from dissatisfied Dell customers. Not exactly what you would expect from a company with such a sterling reputation. Dell executives say they're monitoring online complaints and taking steps to correct those issues. In particular, they've added more customer servi ; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug. Examples of combination products may in ce centers and employees in an effort to better resolve customer complaints. These measures seem to paying off. In a recent article, Investor’s Business Daily cited internal Dell numbers that show a 35% year-over-year improvement in customer satisfacti lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together. on and a 30% improvement in its ability to resolve problems the first time out. Considering the fact that Dell surveys about 24,000 consumer customers a month, these numbers are worth noting. But I wonder if some of the steps Dell is currently taking might come back to bite their brand in the long run. here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe Great Out of the Blocks I recently purchased a Dell computer online, and I have to say the experience was outstanding. In fact, Dell executed flawlessly. I happened to be in the market for a new PC and saw a great price in one of Dell’s advertising circulars. I went to their web site a d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations. Combination pro nd easily found the advertised box. I added a few extras (nothing like a little extra horsepower to jazz up a new PC!), placed my order and sat back to await delivery. Afterwards, Dell sent me several tracking e-mails to keep me apprised of my order’s status. The computer arrived a couple days before pr ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc omised -- a nice surprise. I whipped it out of the box and set it up in a matter of minutes. Everything worked fine and I began to install my own software. During the installation process, however, I hit a snag and my computer locked up. I called Dell, and in a matter of minutes they helped me resolve easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi the problem. I’m sure my experience is repeated thousands of times a day around the globe. After all, this is where Dell really shines. They do the acquisition and setup experience in less time, at a lower cost and with less hassle than any other personal computer company. That’s what Dell’s value pro nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically position and brand promise are all about -- delivering a low-cost, customized PC to your door with minimal time and effort on your part. Not So Great Down the Stretch Although Dell has mastered the PC acquisition and setup experience, they have struggled to provide service well after the and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ sale. And that’s where the Dell brand is taking a hit. Dell built its reputation by providing quality PCs at a very low price -- a classic application of the lowest total cost value proposition. What Dell doesn’t provide is a true customer intimate solution or the best total solution. If a complicated ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi problem arises several months after buying the computer, your problem-solving experience with Dell is likely to be very different (and far less satisfying) than the initial acquisition experience. Until now, Dell has gotten by with this approach because their traditional customers, who tend to be experie ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it. Following aspects would a nced consumers of technology, don’t expect much service after the sale. However, Dell’s customer base is expanding, and that seems to be where many of the problems are coming from. As Dell has achieved dominant market share and picked up more new customers, a growing number of them are first-time buyers dd to the challenges in developing combination products: Which markets to tap where the combination products can do fairly well? Which combination prod or PC novices who require a great deal of hand-holding after the sale. If you read the posts on the customer affairs sites and blogs, you quickly get the idea that the majority of complaints are coming from technology newbies. Plus, as the absolute number of customers continues to increase, the number of cts are meaningful and rational? Which therapeutic categories to select? Which Combinations can address unmet needs of the patients? Do combin mistakes on Dell’s part is bound to increase with them. A Shift in Strategy As a low-cost provider, Dell does not have the profit margins to provide comprehensive customer service. But that’s about to change. Dell recently announced a spate of paid customer support options ranging fro tions increase the patient compliance? What would be the developing cost? How to tackle the risks encountered during combination product developmen m consumer services that mirror the comprehensive in-home services offered from Best Buy’s Geek Squad to comprehensive business services. The business services run the gamut from simple system set-ups to complex deployments that coordinate rollouts at multiple sites and meet tight customer deadlines. Loo t? As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel king ahead, it’s just a matter of time until Dell offers comprehensive IT outsourcing that mirrors similar service offerings from HP and IBM. Why this shift in strategy? One, Dell is trying to protect its brand by offsetting a growing number of customer complaints. Two, and more important, they’re hopin ping new procedures for reviewing their safety, efficacy and quality. Professional from academic institutions, pharmaceutical industries, health care indust g to boost revenues by turning customer service from a cost into a profit center. To me, the most interesting aspect of all this is what it might do to the Dell brand. Currently, Dell dominates the best total cost value proposition in the personal computer market. But some day their top line revenue gro y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products wth will stall unless they do more -- hence their ventures into providing value-added services after the sale. My bet is that Dell will successfully navigate this shift and that customers will want the added services will pay for them. However, adding these services and becoming a services company may pr . As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de ove confusing to customers. Ultimately, it could confuse their brand. Is Dell a best total cost or a best total solution company? Can they implement both value propositions without confusing customers and/or diluting the brand? For now, they remain firmly entrenched in the best total cost camp. But if elopment. They need to be wiser in analyzing the market trends and the regulatory requirements. Companies that provide selfless information through particip their intentions are to migrate -- however slowly and tentatively -- toward a best total solution strategy, it should make for a very interesting journey. More important, it should teach us all some valuable lessons about the challenges involved in maintaining a #1 brand in a rapidly changing environment tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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