This is perhaps the best diagnosis of Dell's problems with the consumer place I've seen. Laura Ries suggests that Dell should ditch the consumer space completely:

Today, consumers account for only 15 percent of sales, but a disproportionate percentage of the service calls. As a result, Dell’s service representatives are overwhelmed with consumers who have bought cheap computers calling for help.

...

So how can Dell cure its brand cancer?

Surgery. Cut out the cancer. Dell should get out of the consumer market and refocus the brand on the business community.

There's another possibility too - partner with one or more service providers (CompUSA, Best Buy) - not to sell their PCs, but to service them. I don't know how easy that would be, but it would certainly make support simpler.

Ries probably has the better solution though - and it's a generally applicable one. When you have a failing business line, the temptation is to fix it, even if the business line in question is the moral equivalent of horse buggies. Sometimes, it's better to change to a more well suited battlefield.

Technorati Tags: marketing, management