Dell Analysis Case Study
Case Analysis: Dell
Introduction
Present CEO and chairman of the board Michael Dell founded Dell in 1984, as a leading technology provider that designs, develops, manufactures, and supports PCs, software and peripherals, storage and servers, and associated services. With operations in four geographic areas and additional business centers and manufacturing sites in more than 20 locations around the world, Dell is able to reach more than 24,000 retail locations worldwide. Dell’s ability to process in-depth customer knowledge and the tailoring of solutions to the specific customer, through a direct customer sales model, catapulted the company in 2008 to the top PC provider in the United States and second worldwide in terms of sales. Dell also commanded 15.1 percent share of the worldwide computer systems market, and 11 percent growth rate, which exceeded industry worldwide computer systems growth of 9.7 percent.
However Dell saw enormous success in 2008, in 2009, Hewlett Packard took over the top spot as the leading PC provider and revenue growth rate stalled with revenues falling from $61.133 billion in 2008 to $61.101 billion in 2009. The economic downturn forced Dell to scale back spending directly impacting Dell’s market share, with Dell shipping 16.7% fewer computers worldwide in 2009 versus 2008. After suffering losses in 2008, Dell announced that it would start 2009 by reorganizing its business units from regional segments to four globally operated areas. The new sectors would include the following: large enterprise, public sector, small and medium businesses, and a global consumer; so that they could better align themselves with the needs of customers in order to produce “faster innovation and globally standardized products and services”.
Key Issues
As previously stated Dell’s key issues began with the little growth worldwide in the corporate market, which was Dell’s core source of revenue, and slow growth in the consumer market. Operating costs
Introduction
Present CEO and chairman of the board Michael Dell founded Dell in 1984, as a leading technology provider that designs, develops, manufactures, and supports PCs, software and peripherals, storage and servers, and associated services. With operations in four geographic areas and additional business centers and manufacturing sites in more than 20 locations around the world, Dell is able to reach more than 24,000 retail locations worldwide. Dell’s ability to process in-depth customer knowledge and the tailoring of solutions to the specific customer, through a direct customer sales model, catapulted the company in 2008 to the top PC provider in the United States and second worldwide in terms of sales. Dell also commanded 15.1 percent share of the worldwide computer systems market, and 11 percent growth rate, which exceeded industry worldwide computer systems growth of 9.7 percent.
However Dell saw enormous success in 2008, in 2009, Hewlett Packard took over the top spot as the leading PC provider and revenue growth rate stalled with revenues falling from $61.133 billion in 2008 to $61.101 billion in 2009. The economic downturn forced Dell to scale back spending directly impacting Dell’s market share, with Dell shipping 16.7% fewer computers worldwide in 2009 versus 2008. After suffering losses in 2008, Dell announced that it would start 2009 by reorganizing its business units from regional segments to four globally operated areas. The new sectors would include the following: large enterprise, public sector, small and medium businesses, and a global consumer; so that they could better align themselves with the needs of customers in order to produce “faster innovation and globally standardized products and services”.
Key Issues
As previously stated Dell’s key issues began with the little growth worldwide in the corporate market, which was Dell’s core source of revenue, and slow growth in the consumer market. Operating costs