Michael Dell – Leadership Case Study

4233 Words Dec 27th, 2011 17 Pages
Michael Dell – Leadership Case Study
Case Study

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Table of Contents
1 Introduction .......................................................................................................................................... 3 1.1 2 A Direct
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DELL‘s direct-sales business model had worked incredibly well over the years. However, towards the end of the decade (2000-10), the company's struggles over pricing and profitability contrasted with market leaders, HewlettPackard (HP) and Acer1. In recent years, DELL's PC-sales growth lagged behind those of its competitors. DELL‘s rivals were able to better take advantage of demand from consumers. DELL was struggling with dismal earnings and a fast eroding market share. In 2007, Michael Dell (Dell) returned2 to revive the company he had started in his college dormitory. Majority of the analysts praised the idea of Dell‘s return as CEO without a clue about what it is that he would actually do to turnaround the company. In the past, DELL Inc. was recognized as one of the best-managed companies in technology and under Dell‘s leadership had transformed itself from a no-name PC player into a powerhouse brand. Michael Dell‘s value to the company can be gauged from the fact that, in 2008, the company spent $1,164,625 on personal and residential security3.

1.1 A Direct Approach
―It’s not all about Michael versus someone else before, Michael was here. He was chairman. But it was up to Michael to take the first-mover role in driving change and he did it.‖
- Paul D. Bell, a senior VP at Dell on Dell’s return as CEO

Michael Dell felt the importance of increasing the capacity, via the direct model, to manufacture close to its

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