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 regards initiated, the industry’s progression, Dell has fallen back due to its lack of focus and stubborn tactics. In response, the company reinstated founder Michael Dell as its CEO in January of 2007. Dell, in light of these events, returned to his own company with the attitude of a newcomer, aspiring to completely restructure the business and drastically shift its focus towards flexibility, awareness, and innovativeness.
During its flourishing stage, Dell Inc. was largely successful because of its ability to sell customizable computers directly to customers at unbeatable prices. In essence, Dell derived its competitiveness from specialization. However, with the rapidly changing technological industry, what was once Dell’s biggest strength has simply become a limitation in the newly emerged market and plunged the company from a $100 billion juggernaut to a $30 billion dinosaur. While the company is among the best at making personal computers, it is unable to rival its competitors in other emerging sectors of the industry. This caused Dell to lose its stronghold as the world’s largest PC maker, with declining sales and a plunge of 28% in net income. Michael Dell, recognizing this