Monday, August 19, 2013

Investopedia: Dell Scratching And Clawing For Share

The situation around Dell (Nasdaq:DELL) continues to churn, as the company scratches, claws, and fights for market share and relevance in its end markets, with Carl Icahn spearheading efforts to disrupt the planned go-private transaction. While Dell has shown that it can improve revenue by trading margin for share, it's unclear to me that the company can win over the long-term with this strategy. As I think management overestimates the extent to which customers will stick with them, and that there are competitors better suited to win on both the price/margin and feature/performance ends of the spectrum, I see Dell stuck in a long-term squeeze play that makes value creation very difficult.

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