Dell Case Analysis

2982 Words12 Pages
Table of contents

Case comprehension p. 2

Situation analysis p. 2

Diagnosis p. 4

Alternative choices p. 5

Predicting outcome p. 5

Choice p. 7

Solution outline p. 8

Case comprehension
Dell Computer Corporation was founded in 1984 by Michel Dell, as a result of a growing demand for his pre-formatted hard-disks and upgraded IBM-compatibles.
Within a year, Dell introduces its first own-design computer system and in 1989, the company introduces its first laptop. The first laptop introduced did not live up to the Dell standards, and was therefore taken off the market again.
Dell had to solve the problem of balancing the production of laptops, desktops and servers. On the laptop market, which Dell was committed to
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The reduced degree of customization indicates that production and assembly strategies may have to be changed from the one used for desktops in order to make the laptop manufacturing successful. As the demand for portable computers was growing Dell 's competitors (IBM, Compaq, Apple) were already gaining a great share of the market. Dell also needs to consider how to convince former customers to buy the improved computers. Furthermore, it is crucial for the company to decide between implementing the direct distribution strategy or the retail channel. All together these issues led to one main concern – how to make the entering into laptop market successful?
The goal of entering the laptop market is to expand the company and to offer customers the high-quality customized computers they want at a competitive price, as quickly as possible and backed by great service. In order to reach these goals Dell needs to gain advantage in production cost and to select an effective distribution channel. The drawbacks that makes this situation difficult is the bad past experience and the need of new educated employees in service and manufacturing sectors, as well as the need for new suppliers. The distribution question is also essential, because many small office and home buyers prefer purchasing through the retail channel where they can see and touch the product, whereas Dell communicates with customers directly through the Internet.
Before deciding between the

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