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Dell’s Extreme Makeover

Dell’s Extreme Makeover. Brian Ulrich. Michael Dell started Dell in his college dorm. Recently going through hard times as the center of the tech industry has shifted from the PC to the Internet, Dell is struggling to find its place.

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Dell’s Extreme Makeover

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  1. Dell’s Extreme Makeover Brian Ulrich

  2. Michael Dell started Dell in his college dorm. • Recently going through hard times as the center of the tech industry has shifted from the PC to the Internet, Dell is struggling to find its place. • HP, IBM and other rivals acquired new companies and capabilities, while Dell stuck with cranking out PCs. • In 2005 Dell was valued at $100 billion, (more than HP and Apple combined) today it’s worth $30 billion.

  3. In 2007 the 44 year old Michael Dell returned to chief executive, determined to change almost everything about his 25 year old company. • Installed completely new management team. • Restructured to focus on customers. • Branching out into services, software, and new hardware categories. (Smartphones, Tablets) • Completely different from its old mastery of logistics and the supply chain. (selling PCs directly to customers and low prices)

  4. January 2007, Dell told his board it was time to replace Kevin B. Rollins, his hand-picked successor. • Dell’s net income dropped 28%, to $2.6 billion, for the fiscal year ending Feb. 2, 2007. • Hired Garriques who was head of Motorolla. He was responsible for the development of the razr. • Garriques went after a 42 year old designer at Nike to team up and develop new exciting things for Dell.

  5. Later in 2007, Dell broke tradition of only selling direct to customers. He announced that Dell would have machines in Walmart. • He turned to Brian Gladden, a 20-year veteran of GE, and the upholder of modern management. • He also agreed with restructuring around customers. (which is unusual for tech companies. They typically organize around the products they sell.)

  6. With the economy in crisis, Dell’s stock continued to plummet. It dropped to $25, then closed the year at $10.24, and kept dropping to an all-time low of just under $8. • October they began selling the world’s thinnest notebook, at 0.39 inches. • They expect to introduce its first Smartphones this year. • Dell shares have doubled since their low in February to $16.

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