Friday, October 2, 2009

False Start - 5 yard penalty?

When people think of hip, hot technology, Apple appliances usually are at the forefront of those things being discussed - iPhones, iPods, Mac workbooks, etc. It wasn't all that long ago that Dell was the leader in computer sales in this country and at the forefront of people's minds when thinking of technology.

Who can forget these annoying, yet addicting commercials - "Dude, You're Getting a Dell..."

http://www.youtube.com/watch?v=Spa_l_12cIw

Dell has been dying a slow death in the last few years. In the recent Forbes magazine (Oct 5 issue) there is a story about how Dell is fighting its reputation as a maker of bland utility computers. Dell is not at the forefront of most people's minds when they are trying to buy a fun and exciting computer. The company abandoned it's desktop computer factory in Round Rock, TX in 2008; this was after Dell lost 15% of its worldwide share after having 18% of the worldwide personal computer business in 2004.

Stephen F. Schuckenbrock (wow that must have been a hard last name to learn to spell in elementary school) is the president of Dell's large enterprises division. He is working with company founder Michael Dell (who returned to the CEO role in 2007) on the Latitude Z, a slick and hip business laptop aimed at business executives, lawyers, and other upper class clientele. Dell is plunging into the high end laptop production line after laptop sales recently surpassed desktop sales, and are banking that corporations are ready to spend money again, hopeful that the recession is over.

I like the leadership idea Dell and Schuckenbrock are taking. They need to take calculated risks to turn around Dell. I like that they are establishing their brand identity with the high end segment of the market. They know this recession can't last forever, and when it is over, corporations will be the first ones to start spending. They are hopeful that time is now, and I like how they are gambling on this to reinvent the company. However, I wonder if there is some recklessness to this idea. To me, this seems like a prime example of anchor leadership. Adaptive work does demand experimentation. Nobody has thought yet to market laptops with all the bells and whistles the upper middle class business person will have no problem paying for.

The leadership at Dell is looking at themselves to see what they can do to bring the company back to the front-burner in people's minds, and are trying to make the proper changes to survive. Some might say this is a ready-fire-aim approach; I would agree that it is. The leaders at Dell believe the recession is over, and they are ready to aggressively offer their new line of laptops. They want to be the first to the marketplace with this technology, and aren't really interested in making sure that the recession is over before doing this. I like the guts and fortitude it takes to make a decision like this. Time will tell it it was the right one to save Dell.

If Dell is wrong, this quick jump on the market might result in the company retreading anymore - just like the offensive linemen who sets his team back 5 yards when he is in such a rush to move to block the on-coming pass defender.

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