Dell Computers (a): Field Service for Corporate Clients [Hbs 9-603-067]

744 Words Apr 13th, 2013 3 Pages
Case: Dell Computers (A): Field Service for Corporate Clients [HBS 9-603-067] 1. What are the key challenges DELL should be concerned with as it enters the large scale server market?

Support service in server market is more critical than in personal computer market, especially when the server is a large scale one, since a problem in server even for a short time could cause serious problem in the customer’s business. Having realized the importance, competitors such as Hewlett-Packard and IBM reduced their response time to enhance the quality of their support service. Dell also is extraordinarily committed to high-quality service, they proposed the response time as short as four hours. In order to accomplish their guaranteed lead time
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As the case says they value the experience in customer interaction resulting in high quality of their service. They cannot expect the same thing from another company who would do the service on behalf of Dell. Second, Dell has been able to improve the quality of its products by directly interacting with its clients and using the feedback from support service. If Dell loses the source of information or compromise the quality of information, the company will have difficulty to maintain its reputation in product quality. The information from the in-house support service will also help to keep its server parts inventory lean, given they can better estimate the needs of those parts with more accurate information.
Of course the company could reduce training cost by outsourcing support service. However, the price elasticity in server market is lower than in personal computer market since the potential problem that can be caused by bad support service and product is critically serious. Reliability is more important than the cost or the price they could reduce by outsourcing and compromising the quality of their service and product. 3. If DELL outsources the service support, then should it use IBM as a vendor to provide the service support? Why or Why not?

Dell should not use IBM as a provider of the support service even if it decides to outsource the service. IBM may seem to be

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