Acquisitions are one way for a company to expand its brand, increase its portfolio, and increase its bottom line. Purchasing companies and bringing them under the brand umbrella allow for a company to either diversify its productivity with new products or production techniques, strengthen its current production process by buying companies with similar production structure, or increase its market share by buying up competing companies.
Dell is no exception. A major focus in its 2011 10k report to the SEC is continuing its process of acquisitions (Yahoo, 2011). Dell uses acquisitions to enhance its production capability by buying companies that enhance its already existing business structure. Dell also uses acquisitions to add divisions to its existing corporate structure. Dell has acquisitioned companies like EqualLogic in order to provide storage capabilities within the company instead of outsourcing. Dell is also trying to get into the networking game by buying companies like Force 10 (Miniman, 2011). It is clear that through these acquisitions, Dell is trying to diversify its production by getting into the storage and networking area. Dell is no longer just a computer manufacturer.
Acquisitions initiative affecting sales at Dell Corporation
The Dell Corporation acquires companies as part of...