Corporate Strategy Case Study

Managing Product Recall: The Dell Way

OR

Abstract:

In August 2006, Dell announced a recall of 4.1 million laptop batteries made by Sony and fitted in its laptop computers. Dell said that the faulty batteries might, in rare cases, overheat and ignite. The recall was termed as the largest in the history of consumer electronics and raised fears about the safety of laptop computers. The incident also raised questions about Dell’s product quality and came as a blow to its efforts to refresh its image and customer service. In such a scenario, analysts wondered how Dell was planning to deal with the problem and save its reputation

The case primarily discusses how Dell plans to manage the entire recall process. It also discusses the battery overheating problem and the recalls announced due to the problem

Pedagogical Objectives:

• To discuss the impacts of battery recall on Dell
• To understand the strategies
adopted by Dell to recall the batteries
• To analyse how Dell handled the entire recall process
• To debate whether Dell would be able to win back the goodwill of the customers or not

Keywords : Dell; Laptop computer; Battery recall; Lithium-ion battery; Sony; Apple Computer; Notebook battery; Battery overheating; CPSC (Consumer Product Safety Commission); Rechargeable lithium battery; Notebook market share; Corporate Strategies Case Study; Dell customer service; Dell battery programme; PC (personal computer) market share