6,845 $m
Once known for its speed to market and customization capabilities in the consumer PC space, Dell is transforming into a different brand, one focused on bringing powerful and efficient end-to-end scalable solutions to enterprise customers rather than consumers. While it is focusing on “practical innovation” and efficient and affordable products and technology to become a leader in the B2B space, it has historically had a stronger foothold in the (declining) consumer PC space and faces stiff competition from HP in networking, storage, and micro-servers. Attempting to be all things to all customers has contributed to public perception issues. Even with solid acquisitions in the solutions space and a campaign that talks about the brand’s “Power to Do More,” the focus and brand story isn’t yet translating successfully to the external world. Dell is at a pivotal time in its journey. With the USD $25 billion buyout offer from founder Michael Dell and private equity company Silver Lake now underway via a USD $7.2 billion leveraged buyout loan, many questions remain about the future of the brand. Possible privatization of the company could afford the brand a unique opportunity to take risks, to invest in building the brand, and help customers see a new Dell—one that is powerful, capable, and differentiated. This much is clear: After several years of disappointments and sliding sales and market share, the time for change is now.