Dell's Customer Contact Center Operations in India

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Case Details:

Case Code : MKTG152
Case Length : 12 Pages
Period : 1999-2006
Organization : Dell Inc.
Pub Date : 2006
Teaching Note :Not Available
Countries : US/India
Industry : IT

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction Contd...

Moreover, in late 2005, Dell received poor ratings in the American Customer Satisfaction Index (ACSI)4 survey conducted by the University of Michigan. A number of customers said they were dissatisfied with the quality of service provided by the company. Analysts said that the company had failed to complement its significant growth in sales with good customer service.

Michael Dell (Michael), Chairman and Founder of the company, commented, "We were growing too much, too fast, in too many places."5 (Refer to Exhibit I & II for Dell's net revenues and world-wide share of PC shipments in the recent years).

Industry analysts commented that the company needed to do a more in-depth analysis of its policies and processes if it wanted to perform better.

Background Note

In the early 1980s, Michael started a PC business. He bought PCs from IBM dealers and resold them at a lower price (10-14% less) through advertisements in newspapers and computer magazines6.

Michael was able to make reasonable profits as the high volume of sales compensated the low profit margin that he charged. In the initial years, the business was run under the name PC's Limited; this was changed to Dell Computer Corporation in 1984.

The company started its operations in Round Rock, Texas, as a manufacturer and marketer of computers with a simple vision - 'sell customized, built-to-order personal computers directly to customers'7. In 1985, Dell launched Turbo, its first computer system. In 1987, Dell opened its first subsidiary in the UK, heralding its overseas expansion. In 1988, Dell went public by issuing 3.5 million shares at US$ 8.50 each.

Excerpts >>

4] ACSI is a nationally recognized survey instrument for customer satisfaction in the US. It was established in 1994. It is conducted by the Stephen M. Ross Business School at the University of Michigan, in partnership with the American Society for Quality (ASQ) and other international consulting firms.

5] "Dell to Raise Headcount,", April 30, 2005.

6] "Dell Inc.,"

7] "The Dell Effect,"


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