Why Dell Rules

By Deane Barker on August 30, 2003

Dell the conqueror

“The real reason for Dell’s success is that the company follows a fundamental axiom: Don’t do anything stupid. It sounds like an easy motto to adopt, but few of us, in business or in private life, actually heed it. Ever tried to uncork a wine bottle with a pocket knife? There you have it.

The company’s history is strewn with examples of conservative decisions that have paid off. For example, acquisitions rarely work. Consequently, Dell has only carried out two relatively small takeovers and, when one of these wasn’t working out, wound it down.”

This is the antithesis of what Gateway is doing these days. (Gateway is at $5.77 today, incidentally, which means I need to remind everyone that I could have bought at $2…but didn’t.)