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Fri, Jan 02, 2009 - Page 10 News List

Dell reorganizes around four customer segments

AFP , WASHINGTON

Dell Inc chief executive Michael Dell speaks at a product launch in Shanghai on March 21, 2007. Dell said on Wednesday it was reorganizing its operations.

PHOTO: AFP

US personal computer giant Dell Inc announced a major reorganization of its operations on Wednesday and the departure of two top executives.

Dell said that instead of regionally it would now organize globally around four major customer segments — large enterprise, public sector, small and medium businesses and consumer products.

Dell, which has been hard-hit by the economic slowdown and increased competition, said its consumer business was already organized globally.

“Dell believes the four groups best capitalize on the company’s competitive advantages, while strengthening execution and synergies,” the company said.

“In the past two years we have significantly improved our competitiveness, reengineered our supply chain [and] broadened our product portfolio,” Dell chairman and chief executive Michael Dell said in a statement.

“We have laid the foundation for the transition from a global business that’s run regionally to businesses that are really globally organized,” he said.

“Customer requirements are increasingly being defined by how they use technology rather than where they use it,” Dell said. “That’s why we won’t let ourselves be limited by geographic boundaries in solving their needs.”

Dell also said Mike Cannon, president of global operations, will retire on Jan. 31 and be replaced by Jeff Clarke, who will serve as vice chairman for global operations and head the business client product group.

The company said Mark Jarvis would step down as chief marketing officer and be replaced by Erin Nelson, vice president of marketing for Dell Europe, Middle East and Africa.

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