Michael Dell established his eponymous company in 1984, and since then, the landscape of consumer technology has seen numerous companies rise and fall. According to Dell, many of these competitors have made critical misjudgments during their journey.
In a recent episode of the “David Senra” podcast, Dell discussed the errors he observed among unsuccessful companies, highlighting three major failures.
“When you’re involved in a fiercely competitive space and you don’t fully grasp the dynamics at play, you’re bound to make mistakes,” Dell remarked.
The first mistake Dell identified was “overzealous expansion.” Although he refrained from naming specific competitors, history illustrates many firms that have floundered due to rapid growth. For instance, Compaq acquired the struggling Digital Equipment Corp. for $9.6 billion in 1998, only to be eclipsed by Dell Technologies by 1999 and subsequently sold to Hewlett-Packard in 2002.
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The second observation Dell made concerning competitor failures involved “design errors.” While he withheld specific names, Dauphin Technologies stands out as a cautionary tale. The company launched the DTR-1, a lightweight palmtop PC, in 1993, but users criticized its limited functionality and cumbersome keyboard. By 1995, the company filed for bankruptcy.
The third critical error he noted was a “failure to grasp the competitive landscape.” Gateway, a once-prominent rival to Dell Technologies during the late 1990s and early 2000s, fell victim to this, struggling to adapt post-dot-com bubble while Dell Technologies more successfully pivoted to engage business clients.
“There are myriad ways to fail, right?” Dell remarked.
Additionally, he cautioned against the “Osborne effect,” where a company introduces a new product that renders its existing offerings obsolete, ultimately crippling sales. “You can find yourself out of business,” he warned. “That’s a scenario to avoid.”
Having served as CEO for nearly four decades—interrupted briefly between 2004 and 2007—Dell acknowledged that while his own company has faced its share of mistakes, they were the “right kind” of errors. “Make mistakes that haven’t been made before,” he urged. “It’s essential to innovate; you want to make small mistakes that you can iterate and correct quickly.”
Correction: October 14, 2025 — An earlier version of this story misstated the name of the podcast Dell appeared on. It is the “David Senra” podcast, not the “Founders” podcast.
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### Hustle Verdict
Our take is that Michael Dell’s insights bring invaluable lessons for companies navigating the tech landscape. The emphasis on understanding market dynamics and avoiding impulsive decisions is crucial in today’s rapidly evolving business environment. We believe that by learning from past failures, companies can position themselves not just to survive, but to thrive in the face of competition. The bottom line is that thoughtful strategy and innovation will shape the future of technology, making it essential for industry players to adapt and pivot quickly to meet emerging demands.
