Dell’s enterprise transition

In the September.2013, after a long-time of battle, Micheal Dell had finally made his company private. Due to the just-in-time ordering system  which allow customers customize the PC according to theirs references and the direct-sales model, Dell grows into one of the largest and successful companies  in High-tech industry.

Why Micheal want to take his company private? What Micheal thought was just like many other CEO’s thoughts. Due to the low labour cost in Asia,Dell is unable to compete with Lenove, acer. Stay in PC and hardware industry which become less and less profitable is not a proper way to survive in this fierce competition.What  he need to do is go to higher-margin market like cloud computing and storage.

I an convinced that Dell can get several benefits from privatization. There is no need for DELL to show Financial status, income statement and cash flow to the public while its main rivals  still concerned  about how to meed the demand of public investors.They may investment more money to develop new product. No worries on layoff problem since it is a private company. However, nobody can deny there is a still long way for Dell to go.

 

Reference:       http://business.time.com/2013/11/14/dell-yes-dell-is-about-to-make-history/

picture:        http://www.thetelecomblog.com/2013/02/06/dell-goes-private-with-help-from-microsoft/

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