Dell and Wal-Mart Will Make Good Partners

Evolving Excellence has been discussing how Wal-Mart’s long supply chain has been impacting Wal-Mart… and how that then comes back to “bite” China. That long supply chain makes it especially difficult for the company to deal with fickle fashion consumers. It will be interesting to see how the Dell and Wal-Mart supply chains interact… and maybe implode.

http://www.evolvingexcellence.com/blog/2007/05/walmart_bites_c.html

Ken

Hello Ken,
Thanks for the comment and link.
Ron

If I were Dell I’d probably be looking for additional outlets too, especially after their dismal earnings and sagging customer confidence. Their tech support has historically been the pits in the industry. That’s why I (and apparently you too!) like Gateway.

I’ve only had one experience with Dell by way of a laptop for my son about 5 or 6 years ago. Within the first year, the lcd screen malfunctioned, and it was like pulling teeth to convince them that it was a hardware problem. I also reminded them that a huge recall was in effect. They finally honored their infamous “in-house” warranty and sent a DHL truck over to pick up the unit for repairs.

Wonder how Walmart will handle customer complaints when Dell’s tech support is in India? However this joint venture works out, I do support the move, as Dell definitely needs someone to merchandise their products AND follow up the sale with good solid customer support … something Dell has yet to learn.

Don

I think Dell will do just fine at WalMart. I doubt that 5% of what they sell is what anyone would call - high end. Of all the Dell systems I have seen at people’s houses, or the ones I work on in places of business, I know of only 1 XPS system.

[Of course, this does not apply to those branded Alienware]

I do wonder what the return lane at WalMart will look like for a while. I won’t say the average WalMart customer is stupid, but I do think they take much for granted. When Joe Customer’s son starts ragging on him about how the crappy built-in graphics on his new Dell suck when trying to play Battlefield 3597 [or whatever] and he wants to return it because no investigating was done before the purchase….

Hello Don,
I think after the first year we will have some idea how the Dell - Wally World partnership will be.

Heh Marc,
Never gave it much thought but my experience mirrors yours. I have also seen only one XPS system at a customers house.

Thnaks to you both for the comments, Ron

Ron, appreciate your informed commentary and usual facilitation of this conversation. And, you are correct, consumers are not dumb…customers know you and your business best. Its why we are listening very carefully.

Don, sorry about your bad experience. As we have pointed out here recently we are hard at work fiixing the kinds of issues you experienced. Also, Don, you are correct, this is the first shoe to drop. …stay tuned on the retail front….and on the global consumer retail front.

It could all add up to a nice overall supplement to the core direct business, which by the way, we are not walking away from. We believe the retail opportunity will add to our historical strength of the direct, customized configurations.

Also, might be worth adding this to the overall conversation. Ron, I suspect you too will be keeping track and putting it together. However, this move into Wal Mart and other global retail moves should not be viewed in isolation, as they are all part of a bigger picture.

Last week we touched on services here, for example. Also last week, Michael Dell spoke to CRN about getting involved with the channel and VARS, opening new business doors. Ron, you might be intrigued by a recent article in the Austin American Stateman that talks about some of the new thinking or approaches to “products.”

There are a range of things that will be rounded out and others to be rounded out as we move ahead or hear further from customers…Its all part of the larger turn around the business strategy Michael Dell and the new executive team are leading. I just offer that thought so that we remember each of these items is a part of a bigger whole

Enjoyed the dialogue here, as always…and thanks for letting me throw in two cents

Hello Richard,
Thanks for dropping by and providing us with additional information and insight into your company strategy. Also thanks for the heads up on the Austin American Stateman article. It was extremely informative and well worth the read.
Your two cents is always welcome here.
Ron

Interesting reads so far Ron. I can’t see anything but positive results in this joint venture. Gateway (love ‘em!) found out the hard way that it’s just not economically feasible to operate retail outlets for one product. Wal-Mart is the Microsoft of the retail industry, and if they can’t make money on the venture, then no one can.

Of interest: BestBuy has been carrying the Gateway label for awhile now, so joint ventures are nothing new, but apparently work well for the consumer. I just hope the sales/tech staff at Wal-Mart are as well trained and knowledgeable as the ones at BestBuy. Nothing worse than a blank “say what” stare after asking a relatively simple question LOL !!

Don

Hi Don,
Thanks for the comment.
Ron