BusinessWeek on Dell
BusinessWeek has an article entitled Dark Days at Dell that takes an interesting look at Dell and its current problems. Its worth a read to understand the Dell issues, and for its insight into the need to continue to innovate. In essence, the article says that Dell's revolutionary business model has lost its edge, and Dell has failed to adapt or innovate.
From the article:
Dell remained slavishly loyal to its core idea of ultra-efficient supply-chain management and direct sales to consumers, even as rivals have stepped up their game and markets have shifted to take away some of Dell's key advantages. Instead of adapting, critics say, Dell cut costs in ways that compromised customer service and, possibly, product quality.
They're a one-trick pony. It was a great trick for over 10 years, but the rest of us have figured it out and Dell hasn't plowed any of its profits into creating a new trick