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1. Comment - Inside the Dell Shareholder Lawsuit: Did Dell and Intel Conspire?

   (Feb 4, 2007 - 11:52 AM)

   It is rather unfortunate that this class action suit has occurred; however, Dells cost cutting plans coupled with (if true) nearly 100% cash in of their executive stock does raise a certain flag to investors.
   
   Warranty and rebate strategy aligned with technology pricing destined for zero (0) is easy to control if quality components and quality service are combined and monitored and corrected. It has been more than 18 months where these two metrics have significantly declined in my observation.
   
   Outsourcing support and service to non-fluent English support centers has driven customer satisfaction down and down over the last 18 months.
   
   I know I was very frustrated with Dell support on several occasions when support center employees who redundantly followed a script rather than used their brain and common sense. Education, training and phone-coaching is the only way to improve support center employees ability to satisfy customers.
   
   I should know - Microsoft PSS in the early days was awesome, and now they too have problems with outsourced support center satisfaction results.
   
   The class action suit should continue only if the lawyers involved are given 5% max of the settlement, and the remaining 95% return to the investors (not like the Enron or other settlements where the lawyers received 40%).
   
   Intel should be taken out of the suit unless they truly conspired with Dell program or warranty management for some ruthless scheme. Increased warranty support cost is a mute point unless Dell is not sure how to address longer warranty support contracts, revenue recognition, quality control and auditing.