Dell Case Study

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 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.

Return on equity (ROE) tells where Myer’s strength lies and if there is a room for more improvement. A company can earn higher ROE if they have higher net profit margin, high leverage, and they are using the assets effectively in order to generate more sales. ROE and ROA ratios can measure the relationship of Myer’s net income with their shareholders ' equity and the total assets respectively. From 2012 to 2013, Myer’s ROE was almost stable at 16%, and then over the period 2013-2015, it decreased from 16% to 5%. The changes in ROE reflected changes in ROA, which was almost stable over the period 2012-2013 at 12% then declined to 8% and it kept decreasing to reach 4% in 2015. ROA changes reflected on the Spread that is also decreased dramatically.

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.”

Dell’s target market consists of personal computer users and corporate users. Dell is known for their ability to build computers suited to their customers needs. Because their largest customer base is marketed online, their geographic area is unlimited. Since technology is rapidly progressing and moving away from traditional PC’s, Dell has to diversify their products.

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.

Prior to the efforts of the other companies to match Dell it had a phenomenal growth i.e. the net income of Dell had grown from 51 million dollars in 1992 to 1460 million dollars in 1999 which was a growth of 28 times as compared to the growths of HP and Compaq.

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

Dell attempted a cost leadership strategy although it’s PC’s and laptops were comparable in price to competitors. Gateway was the cost leader in the industry and once trailed only Dell as the leader of direct sales of computers to customers. Dell does offer computers that are customized to buyer specifications so their computers are more custom than competitors. Very large customers who purchased over $1 million in PC’s made up 70% of the firms revenues. The firm would take a big revenue hit if it lost these customers.

Dell is a global company that delivers products and services in more than 190 countries and over 40000 employees who live and work on six continents. The company deals in enterprise computing products, desktops, monitors, printers, notebooks, handhelds, software and peripherals with a focus on fully integrated improved environmental performance into business. The company had gone through many ups and down from its inception in 1984 and has to face many challenges and competitions to stay ahead in the market (Kolter and Lee, 2008). This paper strategically discusses the fall and rise of Dell Inc from 2007 to 2008 and to compare Dells

It started 21 years ago, when he was ditching classes to sell homemade PCs out of his University of Texas dorm room. Michael Dell was the scrappy underdog, fighting for his company's life against the likes of IBM and Compaq Computer Corp. with a direct-sales model that people thought was plain nuts. Now, Michael Dell is worth $17 billion, while his 40,000-employee company is about to top $40 billion in sales. Yet he continues to manage Dell with the urgency and determination of a college kid with his back to the wall. "I still think of us as a challenger," he says. "I still think of us attacking."

Dell had to solve the problem of balancing the production of laptops, desktops and servers. On the laptop market, which Dell was committed to

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.

Dell is among the world's leading computer manufacturers that has transformed and diversified into variety of business segments over the years. Products range from Dell PowerEdge servers, Power Vault, Dell EMC storage systems as well as PowerConnect switches for corporate clients. For individuals and professional customers products range from Dell Precision workstations, OptiPlex desktops, Dimension desktops, Inspiron and Latitude notebooks. Apart from these core products, the company also offer products and services range including printers, projectors, Axim handhelds, and other accessories. More recently, the company has announced intentions to explore LCD television/computer monitors as well as digital music players

Dell Inc is a multinational information technology corporation based in Texas, United States of America. It develops and sells computers and related products and services. It is one of the largest technological corporations in the world, and bearing the name of its founder Michael Dell, it employs more than 96,000 people across the world. Dell has grown by inorganic and organic means since its inception. Some of the notable mergers and acquisitions it has been involved in include that of Alienware in 2006 and Perot Systems in 2009. By 2009, the company had sold personal computers, network switches, servers, and software and computer peripherals. The company also into sells HDTVs