Summary

Michael Dell is clearly working very hard to makeover Dell, but makeover to what? I think one of the biggest challenges right now is it’s not clear who the new Dell is, or how they want to be seen, aside from successful.

Analysis

Dell needs and deserves an iconic, immediately recognizably undeniably Dell, identity. An identity that stands for something customers care about and that clearly and consistently comes through in their product, their marketing, the way they think and solve problems and how they present themselves to their partners and customers in every interaction. Their style feels inconsistent – in marketing, on their website, in their customer service and often in their products. Are they edgy, safe, young, old, contemporary, classic, reliable, fun – I don’t know.  Who does Dell want to be?
I’m not suggesting all products look the same or all business units operate identically. HP and Apple both appeal to a wide variety of customer segments, but when you see a product or an ad, you know immediately who it’s from before seeing a logo. That is not the case with Dell right now. 
Dell built their success on operational excellence. Now where do they want to be positioned? Higher in the customer focus quadrant?  Higher in the value quadrant?  Higher in the innovation quadrant?  Higher in the color quadrant?
 
Clearly that’s not it, but reviewing the announcements out of the consumer product group lately, a lot of energy has been around adding color choices, but basically as a wrapper rather than anything that impacts the product at it’s core.   Color can enhance design but it’s not a substitute for design. Color is not the user experience. It doesn’t make products easier to use.

As the article points out, Dell has recruited many talented people. But from the outside looking in it feels like they are a lot of talented individuals doing their own thing. Running with their own vision of the new Dell.  It feels fragmented and inconsistent. What Dell needs is THE vision, that can be appropriately applied and adapted by the business unit and segments leaders. What is uniquely and authentically Dell?

And, why isn’t Dell gaining more momentum at retail, while Acer is? When and how will they? Ask a retail salesperson about Dell products and they just don’t have much to say. There’s no story. And this focus the consumer segment has put on color and MLB and OPI nail polish designs – none of that is represented or accessible at retail. If Dell wants to be a consumer brand, for PCs or beyond PCs into new categories of computing and entertainment, they need to work on being more relevant at retail.

PCs, Services. Software, Mobile Devices, Commercial, Consumer  – whoever and whatever the new Dell is, Dell needs a story, clear and simple.

Cathy Stauffer consults with leading institutions through GLG

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Analyses are solely the work of the authors and have not been edited or endorsed by GLG.