As Dell has begun to clarify its
long awaited turnaround strategy, the market has rewarded the company by pushing its stock higher over the last few months. Meanwhile, a number of analysts believe the company is on the right path, although this is
by no means a universal sentiment. In addition to its retail strategy, CEO Michael Dell is also indicating that the company will
beef up its IT services business. At the moment, the company has a small, but rapidly growing service unit, and it's not surprising that the company would like to expand would like to expand in that area. All across the industry, companies have turned to services to offset slow growth and commoditization in their traditional lines. IBM is the most shining example of a company that's successfully undergone such a transformation. But while Dell's intentions are logical, it's not going to be easy. Michael Dell says the company wants to make acquisitions in this area, but any such deals are going to be pretty expensive, since everyone has the same idea these days. Furthermore, Dell will have to overcome its reputation for being
weak on support in order for this business to really thrive.