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    Dell Computers: Field Service For Corporate Clients (A) : Group Number: 7

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    The document analyzes Dell's options for providing on-site service for large server clients. It discusses Dell's current business model and the need to match competitors' service levels. It evaluates three options: 1) developing in-house service, 2) outsourcing to IBM, or 3) outsourcing to a third party. Developing in-house service would allow full control but require high costs. Outsourcing to IBM could leverage their expertise but they are a competitor. Outsourcing to a third party has limited geographical presence. The recommendation is to outsource to IBM initially until Dell can develop its own global in-house service team.

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    Dell Computers: Field Service For Corporate Clients (A) : Group Number: 7

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    someone special
    260 views4 pages
    The document analyzes Dell's options for providing on-site service for large server clients. It discusses Dell's current business model and the need to match competitors' service levels. It evaluates three options: 1) developing in-house service, 2) outsourcing to IBM, or 3) outsourcing to a third party. Developing in-house service would allow full control but require high costs. Outsourcing to IBM could leverage their expertise but they are a competitor. Outsourcing to a third party has limited geographical presence. The recommendation is to outsource to IBM initially until Dell can develop its own global in-house service team.

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    dell computers casse analysis

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    Group7_SecB_DellComputers

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    The document analyzes Dell's options for providing on-site service for large server clients. It discusses Dell's current business model and the need to match competitors' service levels. It evaluates three options: 1) developing in-house service, 2) outsourcing to IBM, or 3) outsourcing to a third party. Developing in-house service would allow full control but require high costs. Outsourcing to IBM could leverage their expertise but they are a competitor. Outsourcing to a third party has limited geographical presence. The recommendation is to outsource to IBM initially until Dell can develop its own global in-house service team.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    260 views4 pages

    Dell Computers: Field Service For Corporate Clients (A) : Group Number: 7

    Uploaded by

    someone special
    The document analyzes Dell's options for providing on-site service for large server clients. It discusses Dell's current business model and the need to match competitors' service levels. It evaluates three options: 1) developing in-house service, 2) outsourcing to IBM, or 3) outsourcing to a third party. Developing in-house service would allow full control but require high costs. Outsourcing to IBM could leverage their expertise but they are a competitor. Outsourcing to a third party has limited geographical presence. The recommendation is to outsource to IBM initially until Dell can develop its own global in-house service team.

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    Dell Computers : Field Service for Corporate Clients (A)

    Assignment: Business to Business Marketing

    Submitted to
    Prof. Bipul Kumar

    Submitted by
    Group Number: 7
    Anoushka Bhada 2018PGP061
    Jyoti Ghakkar 2018PGP167
    Lakshay Singh 2018PGP191
    Moin Faiz Bhutto 2018PGP221
    Sai Kumar 2018PGP316
    Shikha Thakur 2018PGP348
    Vaishnavi Tambat 2018PGP414
    Vivek Singh 2018PGP431
    ⮚ PROBLEM IDENTIFICATION
    Dell needs to make a decision whether to provide inhouse on-site service for large server segment or outsource
    it to IBM or some other third party like DecisionOne?

    ⮚ ANALYSIS OF SITUATION AND PROBLEM


    ● CURRENT SCENARIO
    Dell is the market leader in the worldwide PC shipment with a growth rate of 15%. It follows the basic
    operational philosophy of lean inventory. To accomplish this it follows Dell Direct Model through which
    it receives actual configuration of customer’s directly reducing the involvement of intermediary and
    selling directly to customers.

    Dell didn’t have Innovation as the goal rather they believed in delivering inexpensive and efficient
    products. The company believed that superior service and low-cost products inspired loyalty, creating
    more profitable customers. From Q2 of 2000 to 2001 Dell was the only which had a positive shipment
    growth rate in PC segment and its customer base comprised of 90% of business clients. Dell has won 4
    awards for its superior service quality. It had Premier pages as an interactive catalogue for its top global
    customers. Dell sales people often visited the prospective clients before setting up the client’s premier
    page.

    SITUATION ANALYSIS

    Companies like HP and IBM had begin offering their server customers a variety of field service and
    support options ranging from 24 hour turnaround to 2 hours response time. Apart from quality of server
    which was vital, support service was even more critical as in a server shutdown a company could
    potentially lose tens of thousands of dollars in each minute of downtime. Dell is venturing into large server
    segment and are proposing to guarantee its business customers on-site services in less than 4 hours. For
    which they need highly skilled technicians, ready to handle any kind of problem in highly varying
    frequencies which would involve high training costs, considerable downtime and substantial inventory.
    This is in stark contrast to the basic culture at Dell which follows lean management system.

    Now. Dell has 3 plausible options

    1) To develop its in-house services


    2) To outsource it to IBM its major competitor
    3) To outsource it to third parties like DecisionOne.

    Case 1: To develop its in-house services

    ▪ PROS
    ✔ Able to provide their promised high quality service
    ✔ No loss of valuable customer information.
    ✔ Since this is a growing segment, building their own on site service will help in getting future
    ready for the market.
    ✔ Full control over the entire business setup.
    ▪ CONS
    ✔ This will require highly skilled technicians, which requires high training cost and a
    considerable amount of downtime.
    ✔ Vast amount of trained force needs to be employed
    ✔ Substantial amount of inventory needs to be managed, this goes against Dell’s operating
    philosophy.
    Case 2: To outsource it to IBM its major competitor

    ▪ PROS
    ✔ IBM provides “Best in class” service, offering a variety of field service and support options
    ranging from 24 hour turnaround to 2 hour response time.
    ✔ It has the highest worldwide market share in mid-range and high end market segment.
    ✔ Its vast experience in the server segment, serving 12000 customers in 76 countries could be
    leveraged.
    ▪ CONS:
    ✔ IBM is a direct competitor of Dell in the larger server markets, can have issue in developing
    long term trusted relationship.
    ✔ Dell’s extraordinary service commitment might not be met at priority by any other company
    ✔ Important customer information data could be lost to IBM, which they can use to gain
    competitive advantage against Dell.
    ✔ Since they are already managing parts of PC from other companies, having another company
    on board for service provision could create confusion.
    Case 3: To outsource it to third parties like DecisionOne

    ▪ PROS:
    ✔ DecisionOne has exclusive focus on providing on-site customer service in large server
    segment.
    ✔ Since they only work in service provision, they have an already existing market knowledge
    and expertise.
    ▪ CONS:
    ✔ It has limited geographical presence, only in United States and Canada. While Dell looks out
    for a global imprint.
    ✔ Dell’s extraordinary service commitment might not be met at priority by any other company.
    ✔ Important customer information data could be lost in a third party service outsourcing.
    Recommendation:

    Till the time Dell does not develop its own full fledged service team which is completely skill-trained and
    has a global presence in sufficient numbers, Option 2 could be exercised. Getting in contract with IBM
    would be advisable. This could later be taken over by Dell’s own in-house on-site service team.

    NOTE: Finding a company which solely focuses on service provision and has a global presence (help
    in maintaining lean structure) could be the best option for Dell. This will help in maintaining the
    customers data (by not giving it to competitors) and also leverage the expertise of servicing (enable
    to fulfill the best service provision promise). This however is not an option in the case.

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