Dell Business Problem Solution - Case Study Example

The hypothesis will be tested by running the regression in equation 1 and then testing for the significance of the value of . This value will be tested by stating a significance level of .05. In other words we want to be 95% confident that rejecting the null hypothesis will not result into a type 1 error. Dell has had Top Market Share Between the fourth quarter of 2003 and the 3rd quarter of 2006. (Dell Inc., 2007). In the fourth quarter of 2006, Dell witnessed a negative year on year growth as its worldwide market share in terms of units shipped dropped from by 8.

7% from the fourth quarter of 2005, from 16.4% to 13.9%. (Bangeman, 2007). Hewlett Packard, one of Dell's main rivals in the PC industry witnessed a worldwide growth in market share during the fourth quarter of 2006 moving nearly 11.7million PCs - over 2.2million more than it did during the fourth quarter of 2005. HP also outperformed Dell in the US market moving closer to knocking off its market share perch in the US. (Bangeman, 2007). Dell is currently involved in a financial scandal and there are plans to restate its 2003 2004, 2005 and 2006 financial statements given that these statements do not reflect a true and fair view of the financial position of the company.

This can seriously hamper its profits reported earlier. Dell is currently performing poorly as far as its customer services are concerned. In the U.S for example, a survey conducted last quarter confirms this. It currently parallels other PC vendors and it is currently behind Apple Computer Inc. According to the American Customer Satisfaction Index (ASCI), which is compiled by the University of Michigan by calling U.S residents to find out about their buying habit on many product categories Dell earned a score of 75 in 2004 down from a score of 79 in 2003.

Apple earned score of 81 as opposed to an industry average of 74. (Krazit , 2005). Survey respondents complained mostly about the quality of Dell's customer service, not its products Although the ACSI doesn't ask specific questions about the type of problems customers are having with a company, but customers were clearly more frustrated with Dell than they were in 2004. (Krazit , 2005). A few recurring complaints were the length of time on hold with Dell customer service representatives, as well as the quality of the help customers eventually received.

Overall customer satisfaction with the PC industry remains well below the scores