Thursday, March 30, 2006

Interview: Alienware on the Dell acquisition

After I heard of the Dell acquistion of Alienware (the official news) I immediately was interested in the acquistion and what it could mean for both companies. I was able to fire a few questions at the Alienware team and here it is:

1. How will Dell's acquisition of Alienware affect Alienware innovation?
  • A: The acquisition will allow Alienware to continue its unrelenting commitment to innovation by using the capital saved, through Dell’s efficiency in supply chain and financing, and putting it right back into product development.
2. Will Alienware and Dell share trade secrets and people with each other or will the two be kept separate?
  • A: The companies will remain two separate entities – Alienware is a wholly owned subsidiary of Dell. However, Alienware will now be able to take advantage of Dell’s well known efficiencies such as supply chain and financial services.
3. After Cingular's acquisition of AT&T wireless they stated that there would be no job loss for at least a full year but eventually it did occur. Dell has issued a statement saying that there will not be job loss between either company, but is this realistic?
  • A: We cannot speak on behalf of Dell but as for Alienware, there are no plans to cut any jobs.
4. How will the acquisition affect the Dell XPS gaming systems? Will they be discontinued or will they just be kept as is?
  • A: The Dell XPS gaming systems will continue to be sold. The product lineup for both companies will not be changing.
5. What do you think Dell can bring to Alienware, a company that has such a great reputation in the gaming community?
  • A: Dell brings Alienware it’s efficiencies in supply chain management, logistical operations, its vendor relationships, financial services, and its ability to expand Alienware geographically at a quicker rate.
6. Will Dell maintain its role of only using Intel chips or possibly change that because of Alienware?
  • A: We cannot speak for Dell but Alienware will remain agnostic to any one vendor. You can expect to see Alienware still offer AMD and Intel on its systems.
7. Alienware has a very loyal following of course. Do you think that this acquisition will diminish that loyalty?
  • A: Not at all. Because Alienware is a wholly owned subsidiary, nothing will change so loyal Alienware customers will continue to see the commitment to quality, service and innovation they’ve come to expect. In fact, customers will benefit through better financing options and shorter lead times, just to name a few.
8. Do you think the gaming fan base will respect Dell as the overall company of Alienware or possibly look for other alternatives?
  • A: We think the gaming fan base will understand and respect Dell for acquiring Alienware and eventually realize this ultimately a very positive move for both companies and the consumer.

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