Friday, January 2, 2009
Dell's Change in Strategy
The Wall Street Journal ran a story today talking about Dell's executive changes and characterizing them as a change in strategy. I don't see anything like that in the news. It sounds like they are moving their org chart around to be focused on customer segments, e.g. public sector, small and medium businesses, versus geographies. So, for example, now they have a global consumer business, versus one embedded in different regions. This is neither a strategic change nor a breakthrough. They seem to be reaching a crossroads similar to the one HP faced a few years back, one which they responded to by acquiring COMPAQ. After digesting that acquisition, and changes in management teams, HP seems to be on a different strategic path. It's hard to get excited about this item at all if you are a Dell shareholder.