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Case Title:

Dell Back to the Future?

Publication Year : 2007

Authors: Md Sadik Hassan, Menaka Rao

Industry: Engineering, Electrical and Electronics

Region:US

Case Code: COT0014B

Teaching Note: Available

Structured Assignment: Available

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Abstract:
On January 31st 2007, Dell announced the resignation of Kevin Rollins (Rollins) as the CEO, and founder Michael Dell (Michael) took over as the next CEO. Since mid-2005, Dell had problems with customer service, quality and the effectiveness of its direct sales model. Lately, Hewlett Packard, a competitor to Dell, has gained on Dell and occupied the No.1 spot as a PC vendor. During Rollins’ tenure Dell also faced investigations of the SEC for accounts irregularities. Michael faced an uphill task to take the company to the No. 1 position, where it was when he had left. Analysts felt that it would not be easy for Michael to comeback, although they felt that he would be the only person who could revive Dell.

Pedagogical Objectives:

  • The kind of leadership traits essential to become successful in the competitive IT industry
  • How Michael Dell’s strategies enabled the company to become the top PC vendor
  • The difference between the strategies of Michael Dell and Kevin Rollins and to understand the importance of succession planning
  • Whether Michael Dell will be able to revive Dell with his new plans

Keywords : Michael Dell; Kevin Rollins; Dell Corporation; Direct Sales Model; PC Market; AMD processor; Corporate Transformation Case Study; Intel processor; HP; Dell 2.0; Acer; Dell Connect; Entrepreneur; Supply Chain; Laptop

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