Dell Back At The Top At Dell

from the return-of-the-founder dept

After the close of the stock market today, computer maker Dell announced that it was giving the boot to CEO Kevin Rollins and replacing him with founder and current chairman Michael Dell. The move really comes as no surprise to anyone who's been following the company in recent years, as it's obviously been heading in the wrong direction. During Rollins' time at the top, the company let its reputation for quality deteriorate, a problem that was exacerbated by poor customer service. This translated into lost sales at the company, allowing HP to claim the lead as the world's biggest computer maker, something that would have been unthinkable just a few years ago. The company also suffered because it failed to respond to changes in its industry. As laptop sales started to eclipse desktop sales, the computer started moving away from the commoditized boxes that Dell was so adept at selling. This is something that its rival HP seemed to understand a little better, as it focused more on the fashion element. Furthermore, because consumers pay more attention to the look and feel of laptops than they do desktops, the company's once-vaunted direct sales strategy started to be a problem, since it doesn't offer a chance to see the product before buying it. As for the company's future, it's not clear what Michael Dell is going to do to turn the ship around, but it does seem pretty clear that something needed to change.

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  1. identicon
    Bill, 31 Jan 2007 @ 7:14pm

    Dell deals himself in

    For many years Michael Dell has been awarding himself massive options grants and then dumping the stock like he can't get rid of it fast enough. He is still selling millions of shares. Maybe he could show a little faith in the company and himself and start buying it back.

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