Management Toolkit
Story: Dell product group gets reboot
More Realistic Perspective
wanted to share with your readers, the same comments I made on the original article.
As an employee of Dell, I thought it a tad overstated of you to suggest "Dell has lost significant share." While quarter to quarter fluctuations in share are not uncommon, year to date, Dell's global share is 18.1%. Right about where Dell was at the end 2005. While HP has gained share, those gains are not at our expense.
Even the article you link to says HP "edged out Dell by a mere 110,000 units." Another analyst firm called is a "statistical tie". None of that leads me to conclude Dell lost significant share.
As for our slower growth in the US, the article seems to have overlooked that in Asia Pacific and Japan region, revenue was $1.9 billion on unit growth of 23 percent, as the company gained 1.4 share points year-over-year. Led by 33 percent unit growth in China, Dell was also the fastest growing among the top five vendors in the region, growing at nearly three times the growth rate of the industry. Thats important in one of the largest emerging markets.
Dell's competitors are still struggling to keep their costs in line, and report needing to take even more cost out. On the other hand, at Dell we are investing in our future.
Our competitor's cannot replicate our direct 1:1 relationship with the customer, which we are investing in through a series of what we call Dell 2.0 initiatives; we are offering the customer more choice and our broadest product line ever; and, we are spending over $150 million to improve the customer experience.
Not only are we not stuck, no company follows a perfectly linear path. In Dell’s case, when we hit some challenging times, we have always emerged stronger and better. I suggest that Dell, some new talent combined with all the other actions we have underway is hardly the stumbling business you portray.
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