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Case
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Reference no. 9-502-022
Subject category: Marketing
Published by: Harvard Business Publishing
Originally published in: 2002
Version: 10 October 2002
Length: 24 pages
Data source: Field research

Abstract

Founded in 1984, Dell had achieved phenomenal growth and by 2000 had topped $25 billion in sales and over $2 billion in net income. In the 4th quarter of 2000, however, the PC industry''s average 30-year growth rate crashed to a negative 10%. Dell must make difficult decisions on how to sustain its profitability in light of its broad product portfolio - PCs, workstations, and servers on storage products for a broad cross section of customers in the United States and worldwide. Should it stay the course or fundamentally change strategy?
Size:
25,000 employees, $25 billion revenues
Other setting(s):
2002

About

Abstract

Founded in 1984, Dell had achieved phenomenal growth and by 2000 had topped $25 billion in sales and over $2 billion in net income. In the 4th quarter of 2000, however, the PC industry''s average 30-year growth rate crashed to a negative 10%. Dell must make difficult decisions on how to sustain its profitability in light of its broad product portfolio - PCs, workstations, and servers on storage products for a broad cross section of customers in the United States and worldwide. Should it stay the course or fundamentally change strategy?

Settings

Size:
25,000 employees, $25 billion revenues
Other setting(s):
2002

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