COMPAQ-petitive Review puter Competitive Review June 2001 Early 2001 Developments “Dell takes top spot in Global PC Sales” “Dell takes top spot in U1>.S. server market for Q1” “Dell CEO says storage business is the next target” “Dell will be ruthless in cost cutting – It’s gonna be Bosnia” “Compaq chief declares price war” Business Mitosis Circa 1997 Dell sales segments $ annual revenue, 10,000 Employees Large Corporate Accounts Healthcare Consumer Federal Education Business Mitosis As business units reached critical mass, at roughly $2B in annual sales, they would be split into multiple BUs Large Corporate Accounts Large Corporate Accounts $2Billion Large Corporate Accounts Enterprise Enterprise $2Billion Enterprise Global $18Billion annual sales, 20,000 employees Business Mitosis Split strategy increased focus and fueled growth Large Corporate Accounts $2Billion Large Corporate Accounts Enterprise Global Preferred Accounts $26Billion annual sales, 40,000 employees Divide and Conquer These were all independent business units plete sales and marketing infrastructures Large Corporate Accounts Enterprise Global Preferred Accounts K-12 Education Consumer Healthcare Higher Education Consolidation at Dell Corporate sales recently consolidated back into single business unit to reduce costs
