Dell is a leading computer technology organization. Dell constantly keeps up with changes in their market to stay competitive. Dell is focusing on cost from issues of storage to transportation of products.
Dell's business strategy combines its direct customer model with a highly efficient manufacturing and supply chain management organization and an emphasis on standards-based technologies. This strategy enables Dell to provide customers with superior value; high-quality, relevant technology; customized systems; superior service and support; and products and services that are easy to buy and use.
Dell has emerged as one of the biggest sellers in the PC market. From humble beginnings in 1983, when Michael Dell worked out of his campus dorm room, to 1996 when we reached $7.8 billion in sales, the source of our amazing success has been our unwavering focus on the customer, termed the “Dell Direct Model.”
The most critical shifts in Dell’s contextual factors, including industry dynamics, trends, technology changes and shift of the competitive landscape are following: The industry has changed significantly over the last 20 years. The traditional business model in the PC industry was inside-out, supplying machines based on orders from distribution, resell and retail channels, thus following the indirect selling concept. Dell’s direct model was at this time a new, challenging concept, taking orders directly from the end-consumer, and thereby, eliminating the middleman, costs and time. This was the initial crucial shift away from the traditional schema, allowing Dell’s quick
Dell Computer Corporation was founded in 1984 by Michael Dell. From the early 1990s until the mid-2000s, Dell was ranked as a PC market leader relying on their distinctive marketing pattern “Direct Model” which undertook direct communication with customers and provided customized products. Recently, the PC industry is facing inconceivable worldwide competition, and Dell is gradually losing their competitive advantages by using its direct model in critical business segments. The company is facing shrinkage of growth, increasing competition, declining quality of customer service, and limitation of expansion. These issues have an enormous impact on Dell’s position as a technological giant in the PC industry.
The computer industry is a highly competitive one with continuing developments. Therefore new entrants barely stand a chance. Also because of the price of a tab (around 500) people are more likely to go with big brands they ‘know’ or are loyal to brands they trust. Beside that most existing computer
Dell. Dell’s products—computers, servers and printers—are commodities. Dell tends not to develop the technologies underlying these products. Instead, it purchases the components from firms that develop the technologies (semiconductors and computer software). Dell’s direct-to-customer marketing strategy is not unique, but the extent to which Dell performs this strategy better than anyone else in the industry gives it a competitive advantage. Its size, purchasing power, quality control, and efficiency permit it to operate as a low-cost provider.
Established in 1984, Dell Inc. has been a multinational corporation focused on computers and related services. Dell is a leader in the computer industry due to their two core competencies: a direct-sales model and its 'build-to-order' manufacturing process. The outcome of these two combined strategies has lead to a firm specific strategy of combining at the same time low-cost and differentiation. However, due to a changing market environment and internal issues, Dell's market share started to decline gradually during 2005, resulting in lower growth rates and a decrease in stock value. The question started to arise: "Should Dell stick to their objectives and strategy or adapt to a changing environment?" As being a market leader for a long time,
In short, at the time of the Matching Dell case study the PC industry was essentially in a boom, and particularly in the United States. Steady growth and expansion continued from the first waves created in the mid-1970s by firms like Apple, and exploded in the 1980s with IBM’s first PC offering. Companies likely envisioned a huge potential for growth due to the fact that PC had become attainable as a household commodity, and was almost certainly on the path to become a household necessity in relatively short order. In the early to mid 1980’s, I would argue that the industry was at its attractiveness peak to new start-ups and existing firms that already had a foothold. By the time 1998
sustain its profitability in light of the industry’s -10% growth rate and 50% reduction in profit margins in late 2000, or should it change its expectations and react to the commodity nature of the environment? Dell’s immediate challenge is to try and sustain its positive growth rate, spike its stock prices, and conquer new markets. But how does Dell choose its next product or service to offer the world ? It must make the right choices as to what is the next value proposition that really matters to its customers. Another challenge for Dell is how to cope in a new world where technology devices and components cost less and less (resulting in shrinking profit margins) that become obsolete practically overnight. Perhaps, Dell’s biggest challenge will be to have the discipline to know when and how to change strategies that have worked so well up to now. If Dell does not have the vision and adaptability, it will be just a matter of time before another company does a Dell on Dell.
Dell Inc. is one of the world’s largest information technology firms, serving individual consumers as well as small businesses and large enterprises. The company manufactures and sells PCs and related equipment, including network servers, printers, displays, projectors, and storage systems. Founded from Michael Dell’s dorm at the University of Texas in 1984 with a mere $1,000, Dell’s revenues have grown to approximately $61 billion in 2009. This stemmed primarily from a direct-sales model and a well-managed supply chain, which provided Dell with significant operating margin advantages over competitors. Despite its historic success and legacy, in recent years Dell experienced difficulties in an evolving marketplace, which
Dell had to solve the problem of balancing the production of laptops, desktops and servers. On the laptop market, which Dell was committed to
Dell Computer Corporation’s Michael Dell’s decisive and apparently uncontested vision for the sustained growth of the corporation hinges on advancing the Dell Direct Model. A distinct advantage displayed by Dell versus his closest competitors in this arena-Gateway, Compaq, Hewlett-Packard and Digital Equipment seems to be the synergy created by the integration of marketing communication efforts and their ability to accurately adjust sales staff and production levels to meet the corresponding demand.
In this report, I will review the internal and external environment of Dell Computer which enabled them to compete with other PC competitor. A case study from the instructor about Dell was provided to help with the internal and external analysis of the company in relation with the non price attributes with their PC product. This report will also look on how Dell should implement their strategy to retain their market share and to out position other competitor in the future.
The company has come a long way in the last 32 year from Michael Dell 's Texas dorm room. From that time on Dell has been a dedicated player producing quality personal computers for homes and businesses, as well as government and private organizations. Dell currently manufactures, designs, and sells an extensive range of computing products globally. Dell also support several office applications include security software, antivirus, laptop accessories, and televisions, networking entertainment software, keyboards, mice, printers, and power adapters, digital cameras etc. Dell’s mission doesn’t stop there. They also provide technical support in the company wide with excellent financial services, infrastructure technology services, and Information Technology consulting services. Dell’s serves several different groups which include Government, education and health care