Dell Realigns Business Divisions Around Major Customer Segments

Dell Announces Global Restructuring Program

by Anton Shilov
01/05/2009 | 10:46 PM

Dell, the world’s second largest supplier of personal computers, has announced a global restructuring plan that will unify the company’s product offerings globally and, as Dell hopes, will allow the company to recapture lost market share from its competitors.

 

For many years large computer companies organized businesses around geographic regions, which was not particularly efficient when it comes to economies of scale, but allowed them to offer different product lines in different parts of the world. Differences in product lines offered in different countries are not only somewhat discriminating, but also slowdown adoption of new technologies. Dell decided to change that and from now on it will focus on creation of PCs that will be competitive globally, not just locally.

“In the past two years we have significantly improved our competitiveness, reengineered our supply chain, broadened our product portfolio and introduced Dell to more people in more places than ever before. We have laid the foundation for the transition from a global business that’s run regionally to businesses that are really globally organized,” said Michael Dell, chairman and chief executive officer.

Mr. Dell said the changes result from listening to customers and responding to their desire for faster innovation and globally standardized products and services.

“Customer requirements are increasingly being defined by how they use technology rather than where they use it. That’s why we won’t let ourselves be limited by geographic boundaries in solving their needs,” the founder and top exec of Dell added.

From now on, Dell will have four major business units:

Dell has begun the process of organizing people, functions and practices into the new global business units. The company plans to align its external and internal financial reporting with the new structure during the first half of Dell’s fiscal-year 2010, which begins in February.