Dell Lawsuit Created By: Sam Coelho, Mallory Rennie, Melissa Wickam

 PC’s Limited, 1984 ($1,000)  Operated from his dormitory  Dropped-out to focus on his business  Acquired additional funding of $300, 000 to expand  Produced his first computer of it’s own design (1985)

 Since 1986 Dell has consistently grown  76, 000 employees  Headquartered in Round Rock, Texas  Dell Inc. engages in design, development, manufacturing, marketing, sales, and customer support.  Considered a multinational company  Offers numerous products

 What’s unique about Dell?  Sells its products and services directly through sales representatives, telephone-based sales, online, and through various indirect sales channels

 Before this lawsuit they were #2  Consumers, if qualified, would receive 0% financing for their computer purchase  Customers could purchase “in-home” service plan  Gave the impression of “award winning service”

 Very few shopper, even those with good credit history, didn’t qualify for 0% financing  Lawsuit said those who thought they were getting 0%, actually paid more than 20%  Lawsuit originally filed after states started receiving “epidemic-like waves of complaints”  Class Action Lawsuit filed in New York  Some "faced unacceptable obstacles to obtain warranty service on Dell computers and electronics and other consumers said they never received rebates as promised in the advertising“ (delllawsuit.com).delllawsuit.com

 $4 million settlement  45 states also received settlement checks  Required to change advertising, sales and finance practices  Dell will become more up front with customers  Talk about finance options  Allow customers to cancel orders  Mail-in rebate payments & fulfill warranty obligations within a reasonable time  If they want to say they have “award winning service” they have to have won a service award with 18 months of the statement

 Apple has become Dell’s largest competitor Apple  Have 30 years of experience and listened to the consumer  According to Forrester's 2005 Technology Brand Scoreboard they believe 3 factors are important:  Brand trust  Brand potential  Brand adoption ▪ Earned an A in Brand Trust

 Evans, Meryl. "In Apple, We Trust." TechNewsWorld. N.p., 4 Apr Web. 12 Oct     raphics/__TECHNOLOGY/dell_hell.jpg&imgrefurl= Dl0U0=&h=150&w=200&sz=6&hl=en&start=11&um=1&tbnid=fBZFDze_3B_TuM:&tbnh=78&tbnw=104&prev=/images%3F q%3Ddell%2Bhell%26hl%3Den%26client%3Dsafari%26rls%3Den%26um%3D1