Dell Technologies Inc.: Innovating toward circularity

Abstract

Dell Technologies Inc. (Dell) launched one of its kind laptop Luna in 2021 to pivot into circular electronic products. The laptop was developed in collaboration with Intel Corporation (Intel). It was a fully modular laptop that used sustainable materials, ensured no use of adhesives, reduced the size of the motherboard and other components, and extended the life of the product to promote the 3 Rs of sustainability: reuse, recycle, and refurbishment. However, the feasibility of the Luna was a challenge as a similar product Alienware launched by Dell in 2020 had failed because of a lack of upgradeable parts. Further, its competitors also planned to contribute to circularity using practical product innovations. With the entire electronics industry driven by efforts to design and launch sustainable goods, the circular economy (CE) market is bound to be more complicated. Amidst a competitive environment, the case examines the dilemma for Dell with respect to the mass production of Luna for the market. It analyzes the significance of strategic alliances for the company for the success of Luna and developing consumer trust in circular products. The case allows the readers to understand the innovations in the electronics industry to implement CE through new product development and challenges to scale up production and sales.