Business / Companies

Dell free to look at long-term strategy after going private

(China Daily) Updated: 2014-01-10 08:07

Dell free to look at long-term strategy after going private

Michael Dell was having a great time at Dell Inc's annual conference, held to wrap up 2013, an "exciting" and "solid" year for the man and his namesake company.

"This past year has been a really big year for Dell," he said. "You may have noticed we are a private company once again. We are really excited about this."

The 48-year-old CEO kissed Wall Street goodbye and took the world's third-largest personal computer vendor private, spending nearly $25 billion.

After getting full control over Dell, the founder and CEO will be able to focus on long-term strategies and make investments without thinking about quarterly earnings.

"Privatization has created a renewed sense of excitement about Dell," he continued. "I feel like I'm part of the world's largest startup."

China, one of the few PC markets in the world that shows any strength, and a vibrant spender for enterprise information technology, has become Dell's most important overseas battleground.

According to research firm IDC, Dell is the second-largest PC brand in China by shipments after local vendor Lenovo Group Ltd.

Analysts said Dell's strong channel network and good relationship with the government has leveraged its China business.

Dell's ambitious China plans include 2,000 more retail stores in small cities.

"Small cities mean tremendous opportunity for us," Dell told China Daily in September. "Every percentage point of shift in urbanization in China represents a population the size of New York City."

Bobbi Dangerfield, chief customer advocate and vice-president of commercial operations, said: "We do have a fairly significant initiative in place. We have at least 1,500 outlets in China today, and our job is to expand that number in 2014."

Lower-tier cities are new battlegrounds for vendors such as Dell. Chinese computer companies such as Lenovo and Acer Inc have many local channel partners in county-level towns.

"We have established a pretty significant presence in first- to third-tier cities. A close relationship with electronics retailers, such as Gome Electrical Appliances Holding Ltd, will help Dell to secure market share in big cities," according to Dangerfield.

It's a good chance to provide affordable technology to people who may not have had access in smaller cities, she added.

"Because China is the top overseas market for Dell, the company has established manufacturing capabilities in the country," said Dangerfield.

"In June, Dell opened a new manufacturing plant in Chengdu to supply Chinese customers. That's something we don't have in the US anymore."

Previous Page 1 2 Next Page

Hot Topics

Editor's Picks