Dell rely on to bail out-.docVIP

 PAGE \* MERGEFORMAT 9 Dell rely on to bail out? At this time coincides with Dell’s troubles, Liunianbuli. All the signs cast doubt on whether Dell’s glory also be able to continue leading position in the IT industry. The first is May 5 at the end of the quarter, Dell’s sales grew 6% last year, but net profit fell 18%, which is the first time below the overall PC industry growth. May 9, Dell’s shares plunged 7.3%, hitting a three-year low. As of June 13, Dell shares have fallen compared with last year 40% of its market value has also been more than HP. Second, the ultimate goal is to enhance the performance of cost control because of the flawed result in customer service, leaving Dell’s less effective. For a long time, focusing on cost efficiency has been the core of Dell’s strategy. Dell’s direct sales model to avoid the cost of distribution to retail stores, as well as the cost of inventory tracking, etc., but these measures have also alienated the Dell and the customer relationship. Some people even believe that Dell is not really customer first, but clients ‘to post’. To cut costs, Dell stopped repair some of the major software and virus-related failures, and decided to set up outside the U.S. call center to handle a growing number of U.S. customers problems. The call center staff shortages also affected the quality of service. In addition, three years ago, Dell confidently into the consumer electronics market, but in this market, it is difficult to be successful in the PC industry model of graft over. Second quarter of 2005, Dell LCD TVs in the U.S. market share of only 2.4%, while shipments in the United States ranked 10th, plasma TV’s share was 3.3%, while shipments in the United States ranked No. 7. Dell’s direct sales model of the original’s success encountered in many countries the development of bottles of tracks, unable to raise market share, but saw a decline. Similarly, the developed countries markets, in the UK Dell beats, while in Italy it