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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?


To: Lizzie Tudor who wrote (176128)9/5/2008 11:27:41 AM
From: TigerPaw  Read Replies (1) | Respond to of 176387
 
very naive on the part of the executives that fell for it

It was a very short sighted gain.
In the case of laptops, the suppliers also had occasional problems, with overheating or keyboards or something. Dell had no option but hand-wringing and late night phone calls to asia.
Ultimately the laptop suppliers renegotiated their contracts and Dell wasn't really saving any money anymore.

The next category to go was servers and external storage. There was also an insistence that every employee's performance rating would be based on whether they could squeeze a nickle out of the current cost, and most of that came at the expense of flexibility and quality. Ultimately they broke the build-to-order model because the MBAs didn't even know how it worked and layed off those who did.

TP