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Dell Analysis

3573 words - 15 pages

Dell Critical Analysis

For the longest time, Dell Inc. has been the top, most efficient personal computer maker globally and a strong competitor in the technology industry. A recent shift in the industry’s focus has forced other companies to change accordingly by acquiring new companies and widening their capabilities, while Dell has remained stagnant. The evolved industry requires innovation in multi-technological products and services, incorporating the Internet and mobile devices, in order to stay competitive in the market. Cliff Edwards’ article “Dell’s Extreme Makeover” points out that while Hewlett-Packard, Apple, and IBM successfully adjusted to, and even in some ...view middle of the document...

Dell began his effort by acquiring new and able personnel, first of which was Ronald G. Garriques, newest head of Dell’s consumer division. Garriquest, previously head of Motorola’s mobile devices business, was given the task of reestablishing Dell as a profitable consumer oriented business and a capable competitor of HP and Apple. The consumer division head started by halting all of Dell’s campaigns and clearly defining the goals of the company, among which was new and innovative design. Dell did not hesitate to add Ed Boyd, a designer at Nike, to his effort. Boyd acknowledged that Dell Inc. was great at tailoring computers to customers’ needs; however, it disregarded their desire for expression. Boyd quickly suggested a customizable design on Dell’s laptops for an additional $75. Initially opposed by the manufacturing team, the idea was finally approved by Michael Dell himself. By 2008, Dell had invited GE’s Brian Gladden to his team as the company’s new CFO. After examining the company’s organization, Gladden and Dell came to the conclusion that the company had to be restructured around its customers, rather than the products it offered. This move greatly increased Dell’s flexibility and split its focus into four groups, consisting of consumers, corporations, small and midsize businesses, and governments and educational buyers. However, unlike before, Dell now offers these groups a wider variety of products and services, even joining efforts with software providers, such as VMware and Microsoft, to incorporate both hardware and software into one attractive package. Dell is also focusing on innovation by selling the world’s slimmest notebook, which measures at 0.39-inches in thickness and comes packaged with Microsoft’s Windows 7 operating system. The Adamo XPS will also incorporate a heat-sensing strip, which will open the laptop’s aluminum lid with a swipe of a finger. The company is also extending into other regions of the technology industry by promising to introduce its own smartphone sometime next year, a plan that many companies have had success with. All of these adjustments and initiatives recently taken by Dell indicate that it is in the right direction towards improvement. The company’s shares have also doubled to a current $16. Michael Dell, however, does not see this as the end of his mission; he sees it as the early beginning. With a new strategy and team in place, Dell Inc. is ambitious to regain its throne as, not only a personal computer manufacturer, but the world’s leading technological service and product provider.
In analyzing Dell’s current situation, it becomes clear that the technology industry is a very fast paced and demanding environment for an electronics manufacturer. The case clearly shows that Dell’s biggest flaw came from its lack of motivation to evolve in accordance with the rapidly changing industrial trends and demands, ultimately causing stagnation and inability to compete. While Dell is the bastion of...

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