Dell Case Study

4589 Words Apr 22nd, 2008 19 Pages
CASE STUDY
Creative Media Services
Written by Todd Beals
Media & Technology Analyst
4/22/03
TABLE OF CONTENTS:
Executive Summary……………………………………………………………………….3
Introduction………………………………………………………………………………..4
Problem Identification…………………………………………………………………….4
Company Analysis………………………………………………………………………...5
Critical Success Factors…………………………………………………………………...7
Distribution Channel Analysis…………………………………………………………….8
Sales Infrastructure Analysis……………………………………………………………...9
Industry Analysis………………………………………………………………………….9
Competitor Analysis………………………………………………………………………9
Customer Analysis……………………………………………………………………….10
SWOT Analysis………………………………………………………………………….11
Current Strategy (4P’s, Target Market, Positioning)…………………………………….11
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Can it continue to maintain its stellar track record in light of the sudden decrease in demand, especially with lower and lower profit margins resulting from price wars in the industry ? Should Dell continue forward with its highly successful ‘direct model’ strategy to try and
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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.
ANALYSIS –Dell’s Competitive

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