Michael Dell back as CEO quits

Dell founder may go back to basics

Dell has bowed to pressure by announcing the departure of chief executive Kevin Rollins and his replacement by founder Michael Dell. The change might also see the PC giant go back to basics by sloughing off some products and services.

The move could reassure some customers and industry watchers that Dell is back in safe hands after a troubled period that has seen Dell concede PC market share to old rival HP and others.

“There is no better person in the world to run Dell at this time than the man who created the direct model and who has built this company over the last 23 years,” said Samuel Nunn, presiding director of Dell’s board.

However, Michael Dell had always suggested that he worked in tandem with Rollins on all key decisions and the executive change will be no panacea for the advances of competitors.

The Blackfriars Marketing blog suggested Dell needed to reassess its value and “jettison junk” from its lines.

“Dell has no meaningful business interest in plasma and LCD TVs, nor has it made as much as a dent in other markets like music players and video projectors,” the firm wrote.

“If Dell is going to pull out of its funk, it needs to refocus on computers and do them well – that means getting rid of distractions that the company has no chance of leading the market in.”