Dell Case Study Essay example

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. 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.

Dell and Hewlett Packard (HP) are two of the most influential companies in the PC market. The CEO of HP requires an understanding of how dells strategy allows it to achieve a competitive advantage so that he/she can counteract it. This report has been carried out to provide the CEO with the necessary information to do this. Therefore the objective of the report is to provide the CEO with detailed information on Dell as a business and its strategy. In order to achieve this, first the main strategies of Dell and how they provide competitive advantage will be identified, then the business models and e-business initiatives used

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.

Essay 1 : Introduction to Dell 3 Parts - Look at the Business Model in Particular (Is it fit for purpose?) – Then the Ecosystem – The Modularization and mention licensing Look the Paradigm of Dell Conclusion

A noted misstep in their revised process was that they continued to build systems based on forecasts, rather than based on customer orders. As a result, inventory was still a significant cost factor, and IBM incurred big losses in their PC division from 1996-1998 from this and other initiatives. Meanwhile, Compaq effectively surpassed IBM in the mid 1990s, mainly through large acquisitions of firms like DEC, and followed with attempts to mimic Dell’s build-to-order and direct-to-consumer approach. Continued use of retailers and resellers likely prevented further cost savings, and in 1998 Compaq went from profitable to merely breaking even. Gateway seemed the most well positioned to closely follow in Dell’s footsteps since they were already largely a direct-to-customer business, but difficulties with inventory, IT systems, and a product recall restricted growth. Apparent focus on small business & home sales may have also been a limitation, as the majority of Dell’s sustainable revenue and growth came from sales & relationships with large corporations. While Dell’s competitors may have attempted to mimic their successful approaches, difficulties in fully executing and realizing the benefits have prevented any significant responses.

This analysis describes the case of computer and peripherals industry especially the successful management of Dell Computer Corporation which grew twice as fast as its major rivals like Compaq, Gateway, Hewlett Packard and IBM. The main reason for the success of Dell was their "Direct Model" of selling computers which eliminated all traditional channels like distributors, resellers and retailers. Traditionally all its competitors like IBM, HP, and Compaq etc. used reseller, retailers and distributors to sell their computers to end users. IBM was the first company to launch its PC in 1981 and soon held 42% of the market. But the growth of IBM proved to be short

Both Dell and HP are two strong players in PC industry which refers to an industry where companies produces PCs (desktops and notebooks), handheld devices (smart phones and tablets), and workstations. However, with growing global expansion, Dell and HP’s performance differs. Dell, once the world’s largest PC maker in 2001, has continually lost its market share to HP and Acer since 2007 (Guglielmo 2009). The cause is rooted in two differences of these companies: company diversifications and core competences. Therefore, how firms can continually survive in the PC business is more of an issue for Dell than for HP.

Dell should also consider entering new channels. Despite the failure in 1997, the retail market has seen significant changes and may now be ready for a direct solution. With Gateway opening the Gateway Country Stores and the new alliance with OfficeMax, Dell has a possible model to look at. The retail channel could be what Dell needs to improve their representation in the consumer market. Dell does have a strong brand and with

Due to a changing market environment and existing product life-circle there is a need for the company to revise its present business units and to think about further expansion. There is a shift in customer demand and therefore it is crucial for Dell to recognize in what ways best to satisfy the customers?needs.

Is the dell's direct model working? Last year, the company gave up the PC market share lead to Hewlett-Packard. Dell was the only top computer company to lose worldwide PC market share. This analysis identified Dell's problems and provided strategic moves for the PC maker firm.

Dell turned into the main PC Vendor of the world in 2001. A standout amongst the most one of a kind recommendation of Dell is the by going of affiliate through a direct to definite purchaser system. This records for 90 percent of its business prompting the reporting of higher gainfulness and incomes for the organization. This direct to purchaser results in a shopper concentrated system is called by numerous as the way to the achievement of Dell 's model of business.

Dell Computer Corporation has been an organized business structure since 1984. The company originated from the mind of Michael Dell who was a young entrepreneur eager to sell computers that were built to order. The following information is a Harvard business case study on Dells corporation. In this case study review I will report organizational and managerial concerns, support, as well as any disagreements I see as deemed necessary for the success of this business. First, I will provide an overview of the company from the last twenty years. Secondly, I will be addressing Dells working capital policy. Next, I will explain how Dell funded its major growth in the year 1996. Then, a brief overview will be explained, with a growth scenario for the year of 1997 and how this growth will effect the company. Finally, I will give my thoughts and ideas for Dells company and their future endeavors. With these efforts, I hope to show an organized way of reviewing methods from Dells corporation, as well as give insight to the company 's future and organizational structure financially.

Although Dell is an extremely successful company, there are areas of improvement and enhancement that should be considered. After a thorough analysis of Dell¡¯s IT tools, business model, IT infrastructure and competitive advantage, we have developed seven key suggestions. By implementing these recommendations, Dell can keep its high ranking in the competitive computer industry by increasing customer satisfaction, competitive advantage and superior value chain, without changing its principal operations to achieve these goals.

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