Dells Competitive Strategies and Supply Chain - Research Paper Example

Dell opened its first client service center in Bratislava, the Slovak capital following a comprehensive analysis of the cost/performance ratio of this location. There were a relatively cheap labor force and its location right at the center of Europe was strategic, (Ignatiuk, 2009: P 39). However, by 2005 the service center could not support the new and fast-growing European market especially with the company’s entry into Germany. The company, therefore, had to open a new service center in Germany in 2005 to enable the German business customers’ benefit from a highly reliable service future as a result of the highly qualified German workforce.

The service center is located in Halle and is noted as having a relatively low real estate and labor costs in addition to excellent modern telecommunication infrastructure. The customer care center was opened in 2005 with a workforce of over 600 agents, (Ignatiuk, 2009: P 41). Despite the multiple positive service strategic developments, the company also faces criticism as a result of its offshore customers who complain that their queries are not well managed. At some point, Dell has had trouble handling orders from offshore clients, a case in point being the introduction of brightly colored Inspiron laptops.

Customer reports also indicate that some of the new products are not often of perfect quality in terms of speed of design, product quality, and development. Geckeler (2007: P 11), document that while Dell’s highly integrated value system and value chain provide a sound basis for the delivery of high quality at low cost, the company still does not tap its full potential in the area of customer service. Owing to its direct business model, its close relationships to end customers and its detailed segmentation possibilities, the company should automatically have a better service and support performance, (Pogue, 2006: P 1).

Geckeler (2007: P11) recommends that the company ought to address the strategic gap between its aspiration toward superior customer service and actual performance.