Dell Computer, one of those “success” case studies repeated to me ad nauseum in business school, is seeing a dive in market share after so many years earlier during this decade spent taking share away from competitors in a stagnant market. Now PC sales are up again, but somehow Dell is losing market share to HP and Acer.
Having a “mass customization” system for largely look-alike and work-alike PCs isn’t the magic formula so many believed it was.
But that’s not all. One thing people may not have noticed about that “E” logo that Dell often uses for their brand is that it bears an eerie resemblence to the old Enron symbol.
Now this Texas company is being investigated by the SEC, and it still hasn’t turned in audited 2006 results.
This accounting scandal may largely blow over–or it may reveal enormous financial shenanigans that prove that even Dell’s amazing growth years ago was the product of falsified reports.
Michael Dell was quoted in April as saying that “The Direct Model has been a revolution, but is not a religion.” Maybe it’s not a revolution either but a racket–and about to get busted up.