Sunday, 19 February 2012

Dell, Inc.

Dell, Inc. is an American multinational information technology corporation based in 1 Dell Way, Round Rock, Texas, United States, that develops, sells and supports computers and related products and services.

Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 103,300 people worldwide. Dell is listed at number 41 in the Fortune 500 list. It is the third largest PC maker in the world after HP and Lenovo.

Dell has grown by both increasing its customer base and through acquisitions since its inception; notable mergers and acquisitions including Alienware (2006) and Perot Systems (2009).

As of 2009, the company sold personal computers, servers, data storage devices, network switches, software, and computer peripherals. Dell also sells HDTVs, cameras, printers, MP3 players and other electronics built by other manufacturers.

The company is well known for its innovations in supply chain management and electronic commerce.

Fortune Magazine listed Dell as the sixth largest company in Texas by total revenue. It is the second largest non-oil company in Texas – behind AT&T – and the largest company in the Austin, Texas area.

In 2004, Michael Dell resigned as CEO while retaining the title of Chairman, handing the CEO title to Kevin Rollins who was the President and COO. Under Rollins, Dell began to loosen its ties to Microsoft and Intel, the two companies which were responsible for Dell's dominance in the PC business.

During that time, Dell acquired Alienware, which introduced several new items to Dell products, including AMD microprocessors. To prevent cross-market products, Dell continues to run Alienware as a separate entity, but still a wholly owned subsidiary.

However in 2005, while earnings and sales grew, sales growth slowed considerable, and the company stock lost 25% of its value that year.

This has been attributed to a decline in consumers purchasing PCs through the Web or on the phone, as increasing numbers were visiting consumer electronics retail stores.

As well, many analysts were looking to innovating companies as the next source of growth in the technology sector; Dell's low spending on R&D which worked well in the commoditized PC market prevented it from making inroads into more lucrative segments such as MP3 players.

Lastly, Dell's reputation for poor customer service came under increasing scrutiny on the Web. By the fourth quarter of 2006, Dell lost its title of the largest PC manufacturer to Hewlett Packard which was invigorated under Mark Hurd.

After four out of five quarterly earnings reports were below expectations, Rollins resiged in 2007 and Michael Dell assumed the role of CEO again. The founder announced a change campaign called "Dell 2.0," reducing headcount and diversifying the company's product offerings.

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