Wednesday, August 23, 2006
Dell's Woes
Apparently Qantas Airlines has banned Dell laptops unless the battery has been removed because of the flaming battery problem they are having. Add to this the huge selloff of Dell stock, it has to have the company wondering what direction they ought to take.
This is what can happen to a company that starts out nimble and small and grows unbelieveably quickly. The gaff that was outsourcing customer support offshore took some shine off the company. Now a huge recall of batteries, declining profits, lowering stock valuation has to be worrying the leadership. Add to that that HP is enjoying increased profits and Apple is starting to eat into laptop marketshare.
Interesting things are afoot. I wonder what Dell's next move will be and if they have become so large that they can no longer react to the market like a small company?
This is what can happen to a company that starts out nimble and small and grows unbelieveably quickly. The gaff that was outsourcing customer support offshore took some shine off the company. Now a huge recall of batteries, declining profits, lowering stock valuation has to be worrying the leadership. Add to that that HP is enjoying increased profits and Apple is starting to eat into laptop marketshare.
Interesting things are afoot. I wonder what Dell's next move will be and if they have become so large that they can no longer react to the market like a small company?
