Dell's Ailing Business and 10 Ways to Restore Its Flagging Fortunes

By Don Reisinger  |  Posted 2013-03-25 Print this article Print

5. Dell must win back the confidence of enterprises

Dell has all but lost the enterprise. HP and Lenovo have a stranglehold on that market at the moment and so far, there’s been no budging. Dell, of course, thinks it can change that situation. But so far it hasn’t done enough to actually appeal to current corporate needs. When will that change?

6. What is Lenovo doing right?

Dell needs to take a good, hard look at Lenovo and figure out what that company is doing right in the PC market. Lenovo over the last couple of years has watched its PC star soar. So far, Dell has done nothing to respond to this competition. Part of Lenovo’s success is based on two factors: security and encryption. Dell needs to start taking a few pages from Lenovo’s book.

7. Work more closely in the channel

One of the things HP did to become so successful was work more closely with partners in the channel. Former CEO Mark Hurd, in fact, often went on sales calls to help with the channel sales effort. Michael Dell doesn’t do anything of the sort. And his company is in deep trouble today because of it.

8. Forget about home entertainment

Dell made the odd decision as of late to focus on the home. The company is trying to turn its PCs into home-entertainment devices. It cares too much about sound and audio while it’s tried time and again to become a home-PC companion for entertainment-seekers—enough of that. Dell isn’t going to find a formula for survival in the living room.

9. Dance around the Microsoft-Google issue

Dell needs to diversify its operating system offerings. Right now, Windows 8 is only slowly ramping up, which is hurting the company’s PC sales. At the same time, an increasing number of people are warming to the idea of PC makers integrating Android (and even in some cases, Chrome OS) into mobile computing products in unique ways. Dell obviously can’t ditch Windows, but playing nice with both Google and Microsoft just in case the future holds something rather surprising for the industry might not be a bad idea. Google and Microsoft might just prove to have the final say on what happens—and what doesn’t—in the technology industry in a few short years.

10. Don’t revolutionize the business

When it’s all said and done, the worst thing Dell can do is try to revolutionize its business and dramatically change what it’s all about. Dell still needs to be Dell. And as its financial performance proves, it can still generate billions of dollars in profits by being Dell. Although the company still needs help, Dell must always remember that being Dell-like isn’t all that bad.

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