Reorganizing Dell Inc.

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Case Details:

Case Code : BSTR367
Case Length : 17 Pages
Period : 2000-09
Pub Date : 2010
Teaching Note :Not Available
Organization : Dell Inc.
Industry : IT - Hardware
Countries : US

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background Note

The history of Dell can be traced back to 1984, when Michael founded PC Limited with a start up capital of US$ 1,000 in North Austin, Texas, the US. The company started selling customized PCs directly to the consumers. By adopting the Direct Business Model, it eliminated the middlemen markups and passed the savings on to the consumers...

Michael Dell at the Helm Again

In January 2007, Gartner Inc. and IDC Inc. (IDC) announced that Dell had lost its top position in the list of global PC sellers to HP.

Since 2003, Dell had been continuously occupying the top position in the list of global PC sales. Among the top five global PC sellers, (Refer to Exhibit IV for Top Five Players in the Global PC Market for the period between 2004 and 2007) Dell reported the least global sales in the third quarter of financial year 2006-07 that ended on November 30, 2006...

Dell in Trouble, Again

Even as Dell was trying to regain its top position in the global PC market, the global financial crisis of 2008-09 cropped up, affecting its business badly. According to industry experts, Dell's focus on the hardware market made it susceptible to the financial crisis...

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