Last year, CEO Michael Dell took the decision to go private. After originally starting as a private business, doing an IPO and turning public, we surely wonder why did Dell decide to delist itself from the NASDAQ stock market?

According to Michael Dell, an advantage of being a private company is that they “get to be bold and lead without fear of the guidance”. Lots of companies turn public with the aim of raising capital and expanding. However, this forces them to focus on short-term decisions in order to maintain a high stock price and firms often disregard their long-term growth strategies.

As a private company, Dell no longer have to worry about the next quarterly statement, which is a statement published publicly by all public companies (usually produced for external stakeholders), or to abide to certain regulations imposed to public businesses. Dell now have more privacy and freedom, think more in the long run and take more risks. It has proven to be a wise decision from Dell as the firm has been growing more quickly than its competitors recently.

With the increase in technology and globalization, firms are using more pioneering approaches and innovative stategies have played a huge role in Dell’s comeback. As firms use benchmarking to reduce their competitors’ operational effectiveness, Dell will have to use its intrapreneurship skills to gain competitive advantage and even become a disruptive innovator.

Image sources:
http://infotechlead.com/wp-content/uploads/2014/04/PC-shipments-statistics-in-Q1-2014-by-IDC.png
http://blogs.marketwatch.com/thetell/2013/10/29/as-dell-officially-goes-private-michael-dell-tells-team-we-made-it-and-it-was-worth-it/