Case Analysis on Dell, Inc.

1521 Words Mar 25th, 2011 7 Pages
PART I: INTRODUCTION/BACKGROUND SUMMARY My name is Natasha Mortimore and I have provided a detailed case analysis based upon “Dell, Inc. in 2006: Can Rivals Beat its Strategy?” In 1984, Michael Dell formed a company now known as dell, Inc. with a strategy to sell build-to-order computers directly to its customers. Customers would have to phone, fax, or order their custom built computers which eliminated the expense of middlemen known as resellers. Between the years of 1986-1993, Dell had to refine its strategy in order to gain market-credibility against its rivals. Such rivals included IBM/Lenovo, Hewlett-Packard, and Gateway.
By 2005, Dell, Inc. had acquired a 33.9% share of PC sales within its industry inside the United States
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Although this plan made up for the 15% increase in sales, it was devised after internet sales became more prominent and it found that sales to this market resulted in low profit margins and high costs.
Dell had also only catered to 2 market segments until late 1990s which consisted of corporate and governmental buyers, and low volume business and individual buyers. As sales progressed, the company found that the segments in which they catered to should have been divided into more specific categories with specific needs. The company then developed a sales force and a research and development department to start tracking and testing new developments in components and software and design them into Dell’s product line. The company had also created kiosks after finding that potential customers were more reluctant to purchase their products before testing along with customer forums to help stay close to its customers.

PART III: RESEARCHING INTERNAL & EXTERNAL FACTORS
Data provided below for Competitor Analysis reported directly from the company’s website.
COMPETITOR ANALYSIS

Factors Dell Hewlett-Packard IBM Gateway (“ACER”)
History
Started in 1984 Started in 1939 Started in 1911 Started in 1985

Products/Services
Computers, monitors, data storage, servers,

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