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Tuesday, May 16, 2006

Computer Business Dell Makes Only Minor Strategy Adjustments

Even if stock for computer business Dell keeps falling, executives don’t plan to make any major strategy changes. Instead, the computer business’ management will just make very small tweaks in the business plan.

Dell is known for not departing from its strategy, called the “Dell Way,” but seems to in this case be at least a bit more willing to try new things in response to recent failures. According to experts, Dell, led by Michael Dell is very aware of its issues and has started to make steps towards addressing them.

While there will be no easy way to fix problems the computer business has had, Wall Street may wish the opposite. Dell’s shares fell $1.23, nearly five percent on Monday to $25.20 on Tuesday. The stock price is 30 percent lower than a year ago. Monday marks the fourth time in the past six quarters that Dell has had to lower its financial goals.

The computer business plans to release a full earnings report on May 18. Customers are still expressing a desire to buy computers directly from the manufacturer by phone and on the Internet, so Dell is not going to start stocking computers in stores or using salespeople outside the company to sell them. Spokespeople from the company say they will bring their direct sales approach to other parts of the glove, including Europe and Asia.

During the time Dell has been focusing on other markets, the U.S. computer business has had serious issues. The company has tried to defend itself using exciting, flashy products. It also raised the profile of its more expensive computers and bought Alienware, Inc., a computer business that is geared towards video games.

Dell will be improving its customer service by adding 400 workers to its 1,000-staffed Oklahoma City center for corporate customers. As a part of these efforts it also added technology that lets service staff control customer computers remotely. The company intends to stop focusing so much on price and calling attention to special features.

The process of rebuilding will be slow for Dell, but investors will eventually see a turn-around according to the computer business itself and expert analysts.

Blogged By: Computer Consulting 101