Behind The Scenes Of Dell's Decision To Go Private


Outside Analysis

On Dec. 5, 2012, The Boston Consulting Group, a management consultant hired to assist the special committee, presented the committee with a scathing analysis of Dell's end-user computing business.

It concluded that "as a result of a likely persistent decline in the premium segment of the EUC business, unless the company changed its strategy to become more competitive in the lower-margin segment of the EUC business, the company would require years of aggressive restructuring in order to maintain its value, and would face the risk that its decreasing scale would render it less competitive."

The Boston Consulting Group expressed that Dell would need to transform from a build-to-order model to a more efficient build-to-stock model to compete more aggressively in higher-growth markets.