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DIGITAL COMMUNICATION AT DELL



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Case 6 0032 Digital Communication at Dell Note to Students This case study focuses on Dell Computer s use of social media and digital communication to support its business model Given this to fully support your understanding of this case study please visit Dell s Online Community at http en community dell com as you prepare this case This will provide you with an interactive and live view of Dell s actions and offerings in this space to best help you answer the case questions Global Neighborhoods Blog December 23rd 2007 By Shel Israel The Dell script pretty much follows the classic Hollywood formula Sin Suffer Repent then Flourish Dell s sin was clear In order to win a hardware price war it scrimped more than it should have on product and service It suffered by watching loyal customers migrate to such rivals as HP who overtook it for category leadership It suffered further from seeing its revenues and stock price plummet into a prolonged and well publicized freefall Dell is just now concluding an 18 month period of penitence The CEO who steered the Dell Supertanker nearly onto the rocks was unceremoniously replaced at the helm by Dell Founder Michael Dell The company is buying back its still tepidly priced stock It has begun a reinvestment program of 1 billion into support Reviews of new Dell products are mildly favorable but not quite laudatory Dell is most certainly coming back Dents in its reputation have been hammered out But the company has not yet returned to the sort of flourishing it enjoyed for more than a decade What makes this all so interesting to me is the role that blogging has played in this apparent comeback The company started a blog in June 2006 Now called Direct2Dell it has become the most popular blog published by a major global enterprise 1 History of Dell Dell Computer Corporation Dell was founded in 1984 by Michael Dell who began selling random access memory chips and disk drives for IBM personal computers from his college This case was



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