The story of Dell Middle School was 10 years ago. Dale is still a poor student, and he also uses holiday jobs to make money like ordinary middle school students. On his first business trip, he sold the newspaper to the newspaper office. He found a trick: ordering newspapers from a newly moved or newly married couple is the easiest way to make a deal. So, he went to the household registration office and other departments to collect this information, and then sent the newspaper directly to such people, so the order came in like a snowflake. In the first year, Dell's revenue was $654.38+$800,000. Once the teacher asked him to hand in his homework, and he handed in the tax bill. The teacher found that Dale earned more than himself. This inspired Dell? Business mind? And then what? Business sense? .
1984, Dell drove the white car he bought while working in a primary and secondary school to go to college, but at this time his enthusiasm for installing computers exceeded that of going to school. After class, the door of his dormitory is always full of people who come to buy the computer he installed. Because of his rich computer knowledge and professionalism, the computer he assembled is of good quality, but the more important reason is that it is cheap. The same computer, IBM sold 2000 dollars at that time, and he only sold 700 dollars. Because two-thirds of the final price of IBM computers was earned by middlemen and agents. These middlemen and agents don't specialize in computers, they pay more attention to cars and home appliances, and have no time to improve quality.
Dale suffered? Direct selling? Encourage making money. So I registered as a freshman? Dell computer company? , devote yourself to the self-produced (installed) self-selling computer.
At this point, he naturally forgot his homework and his grades plummeted. My parents heard about it and rushed to school, only to find that his room was full of computers and parts. Seeing your son almost be assisted by a computer? Ruined? My parents lost their temper.
Dell suggests: Don't be angry, your son is competing with IBM, and you can't do it without fighting! ? But this did not stop parents from shaking their heads.
When registering the company, Dell had a clear design of the company's development ideas and was full of confidence in the future.
Sure enough, he did $80,000 in business in the first month. Since then, it has been out of control 15 years, with an annual growth rate of over 90%, creating an unprecedented high-speed and sustainable development for any enterprise. Today, its annual turnover has reached $654.38+08 billion, making it a world-famous multinational company and one of the world's top 500 enterprises, on an equal footing with computer giants such as IBM, Compaq and Hewlett-Packard.
Dell has changed the business model of global enterprises.
Dell's only marketing strategy is to fully implement the direct selling method of getting rid of middlemen and become a businessman who does not produce parts but only assembles them. The fundamental trick is to take the interests of the original middlemen for yourself.
Dell's three principles: first, the minimum inventory is to reduce costs; Second, it can reduce costs without looking for middlemen; Third, make products and services close to customers. As a result, a new operation mode has emerged, that is, a virtual integration mode different from outsourcing: a production mode that only directly grasps supplier information, determines standards, coordinates supplier relations, creates maximum value for customers, and puts into production after receiving orders. To this end, Dell is determined to let employees spend 40% of their time with customers.
The story of Dell's entrepreneurial failure Dell's famous saying: When you develop fastest and best, development is the biggest weakness. His words are very profound.
The first lesson is that there is too much inventory. This made its 256K chip unattended overnight, and Dell suffered heavy losses. Now its inventory turnover is less than 1 1 day.
The second lesson is technology for technology's sake. This is a successful design, that is, a perfect product integrating computers, servers and workstations? Olympics? To the market, but no one cares. Dell painfully realized that the perfection of technology is not the goal, but the usefulness to users is the goal. Only the technology that customers need is good technology. In addition, product technology innovation must be gradual, and it is risky to solve problems in a package.
Dell believes that the biggest challenge he faces is the lack of managers. This sentence hit the heart of all enterprises.
Gates partner
A pioneering work that attracts worldwide attention is that Dell successfully applies the marketing strategy of the large computer market to the personal computer market, that is, sells products through direct sales.
Because of Dell's creative marketing method, its inventory turnover times are more than twice that of its competitors, which gives Dell an advantage over other competitors in occupying the market.
According to the analyst's forecast, the share of PC direct sales will further increase, and the growth rate may increase by 50% compared with the original share. This is also in line with Dell's forecast. Future customers will be more and more inclined to buy directly, which can provide customers with more satisfactory services. ?
While consolidating and expanding the traditional direct selling market, Dell is constantly looking for the possibility of establishing other sales channels. With the rapid development of the Internet, Dell decided to enter the Internet. In 2000, Dell's turnover through the Internet reached $654.38+0.6 billion.
Dell's great achievements in the network have made Bill, president of IT giant Microsoft? Gates was so impressed that he decided to cooperate with Dell on the Internet. 1In the spring of 997, Gates made a special trip to Austin to visit Dell.
Dell has become one of Microsoft's biggest partners. The world is so big, how many people can make Gates bow!
Dell's performance is soaring.
Dell decided to formally establish Dell Computer Company. This year, he was only 23 years old, and he began to take a solid first step towards success.
Young people are always full of enthusiasm and courage, but correspondingly, young people are easy to overdo it. 199 1 year, Dell's sales reached $800 million.
It's too smooth for Dell to feel a little high. The blind pursuit of output has made Dell encounter many difficulties in infrastructure construction and management, and the company has fallen into a disorderly state. Dell suffered a loss for the first time since its establishment, and its share price also fell sharply.
The blow was huge, but it also sobered Dell up. I fell back to the ground from the air again? . Dell reviewed the road that the company has traveled in the past nine years: changing the development direction of the company from misunderstanding? Pursuit of maximizing production? Get out of it. Replace it with a new business strategy? Liquidity, profit and growth? It has become the coordinate of the company's future development. Since then, Dell's annual sales today are $32 billion. Dell has become a truly big company and a mature businessman.
2013101October 30th, Dell founder Michael? Dell and Silver Lake Capital completed the $24.9 billion privatization of Dell and delisted from Nasdaq. After Dell's privatization, Michael? Dell will continue to be the CEO of the company, holding 75% of Dell's shares.
2013165438+14 October, a document submitted by Dell to the US Securities and Exchange Commission showed that the members of Dell's board of directors and senior executives were paid $5,965,438+million in delisting transactions.
Michael. Dell's? Privatization? Chess: The Dilemma from Success to Kindness
Behind Dell's possible acquisition is that with the transformation and slowdown of its business and the broader PC market, before the news of the acquisition negotiations came out, the company's market value shrank to about $654.38+09 billion, while the company's market value once exceeded $654.38+00 billion. This company, which once printed detailed computer parameters and a series of 800 sales telephone numbers on the back cover of magazines or prominently on street billboards, only sold PCs. Since HP took the throne of PC in 2006, it has been looking for it, but it has not found its own? A land full of milk and honey? .
Michael. Dell returned to the company in February 2007. On the one hand, it adjusts the PC direct selling mode by establishing channels and constructing distribution systems. On the other hand, it intends to open a new market through acquisition and turn Dell into? End-to-end solution provider? .
Since 2007, Dell has acquired more than 20 enterprises, all of which have nothing to do with PC business, to fill its shortcomings in the overall IT solution. These acquisitions helped it achieve a record revenue of $654.38+08.6 billion from enterprise solutions and services in fiscal year 2065.438+02. Revenue from solutions accounts for about 30% of its global revenue and brings about 50% of its profits.
In Michael? Dell's? Double regulation revival? In this way of thinking, on the one hand, Dell makes every effort to create the fashion sense of the terminal products like Apple. The thinnest, smallest and brightest color? Meet the needs of consumers; On the other hand, learn from IBM and transform to IT services and consulting. However, Dell did not find a comparative advantage with rivals such as Apple, and launched star products to strengthen its image. At present, its PC market share has fallen to the fourth place, behind HP, Lenovo and Acer. Because the software and cloud computing businesses are still in the climbing stage, Dell has not really become a solution provider. In the final analysis, its direct selling gene has not completely changed.
Have any employees commented on Michael like this? Dale:? He is a very diligent CEO. He is always communicating, always thinking and always working. ? Where is Michael? Dell himself once said:? I don't like doing only what I like. I like to do things that can make the company successful. ? In the same six years, Peng finally led the transformation of IBM, Michael? Did Dell fail to show a beautiful record after his comeback? Make a comeback? .
Difficulties in privatization
Dell has been changing, but has not found an effective breakthrough. From 20 10 to 20 13, Michael? Dell chose the road of privatization, perhaps to make the change no longer timid, but also to avoid the financial figures and pointing fingers from investors that must be faced every quarter. However, there are still many difficulties in this leveraged buyout, and the current market still has doubts about this huge and high-risk transaction. According to Fortune magazine's estimation, there is only a 20% chance of success in this transaction.
According to the online article of Barron's Weekly, Dell's total cash in the latest quarter was $654.38+04 billion, and its net cash after debt removal was about $5 billion, or $3 per share. Considering the net cash reserve, its effective P/E ratio is even lower than the surface data. In addition, Dell's cash reserves and investments? Almost all of them? They are all held outside the United States, and if these cash are remitted back to China to fund leveraged buyouts, Dell is likely to face extremely high punitive taxes.
There are also Wall Street analysts who are skeptical about whether this transaction can raise enough funds. According to the analysis, in order to complete this investment, Dell needs buyers to raise at least $654.38+087 billion to acquire equity and debt. If the privatized partner holds 30% of the final shares, that is, $5.6 billion, it will need additional financing of $ 654.38+036.5438+0 billion.
Another difficulty is Michael? Dell's own expected participation. He holds nearly 65,438+06% equity of the company. Many previous acquisitions involving management were questioned because of potential conflicts of interest. Avoiding excessive purchase price is beneficial to executives who join the consortium, but it may contradict their responsibility to strive for the highest price for shareholders.
Advantages and disadvantages of privatization
For Dell, which is deeply in transition and has poor performance, privatization is quite desperate. For the past? The youngest CEO of the world's top 500? Michael. For Dell, privatization has made it a dancer at the tip of the knife. Success or death? It depends on the pros and cons of privatization.
As mentioned earlier, privatization can first make Michael? Dell has made bolder reforms without worrying about maintaining quarterly earnings during the reform process. For many listed companies, the requirements for public transactions are not so easy to bear. Listing means publishing financial reports every quarter, and facing the pressure of investors and short sellers when the performance fails to meet expectations.
The process of transformation is often complicated. After privatization, Dell can better transform itself out of public view. Faced with the serious shrinkage of the PC market, Dell had to adopt the strategy of turning defensive into offensive. It is wise to privatize Dell, repair the company behind the scenes, and then appear as a smaller, faster and more profitable image after the transformation is completed.
? Acquisition? Is that Michael? Dell's transformation method theory, the other side of the coin, privatization will limit Dell's ability to acquire other companies through equity. Michael. Dell may find itself at odds with investors who are only interested in profits, but it still needs to cater to investors, that is, those who invest in Dell's private ownership in the process of privatization.
Leveraged buyouts will further expand Dell's long-term liabilities, which are currently $5.3 billion. This may make Dell lose the flexibility of investment. Leveraged buyouts will force privatized Dell to focus on debt repayment. Unless private equity investors are willing to invest more money in the future, their ability to make strategic business acquisitions will be limited. But this will affect the return on investment.
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