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Mini Case Study
Cody Smith
Indiana Wesleyan University
Financial Reporting & Analysis
Professor: Smith, Rachel
11/11/2023
Everyone in the early 2000’s was making a similar purchase. The personal
computer was beginning to be a common household item and was being bought by
consumers in record numbers. Dell was one of the most common name brands of
personal computers. Despite the competition in the emerging market, Dell was able to set
themselves apart from the other offerings. They set themselves apart by offering above
and beyond customer service and in home servicing for their equipment. Dell was on a
meteoric rise but the end was near as technology never stops changing.
Dell Inc. did not keep up with the changing tides. As smart phones and tablets
took over the market, personal computer sales declined. Dell found itself losing money
and with sales declining, the computer company was in dire straits. The company had
been publicly traded for years but on February 5, 2013 Dell was absorbed by Silver Lake
Management LLC and Microsoft Corporation (Gupta et al., 2013). While some
shareholders were upset by the lack of information flowing their way and were shocked
by the business model change after the buyout, others gladly accepted the acquisition and
were happy to rid themselves of the failing stock. Many shareholders had no faith in the
personal computer market rebounding (Gupta et al., 2013). After all the shareholders
were paid, the total cost of the purchase was 25 billion dollars and Dell was now a
privately traded business.
Dell Inc. changed its business model after the acquisition. The company leaned
toward corporate American and less on the slowing personal computer industry. The
company shifted to a more business oriented product lineup and offered many services
that lined up with a technology driven business model. Part of this shift was the purchase
of another business, EMC (Gartenberg, 2018). EMC was a company that specialized in
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