Dell Computer Corporation – Strategy and Challenges for the 21st Century

16130 WordsJul 7, 201365 Pages
DELL COMPUTER CORPORATIION | Strategy and Challenges for the 21st Century | | Table of Contents INTRODUCTION 4 1.1PC and Laptops – Cash Cow 6 1.2 Storage Solutions - Cash Cow 6 1.3 Servers and Networking - Cash Cows 7 1.4 Services - Dogs 7 1.5 Peripheral - Dogs...................................................................................................7 2. ANSOFF’S GROWTH MATRIX 8 2.1 Market Penetration ...............................................................................................9 2.2 Market Development..........................................................................................10 2.3 Product…show more content…
The BCG analysis is executed using information we gathered from sources such as Gartner, Reuters, Dell corporate web-site, and some industrial reports (Please note that the references can be found in the appendices). We have classified DELL's Strategic Business Units as follow 1.1PC and Laptops – Cash Cow DELL’s PC and laptops business have strong market share in the United States and is fast gaining market share worldwide with a double-digit growth rate in countries such as India and China. DELL is ranked the world's number two PC maker with a market share of 13.7 percent for the 2nd quarter of the year 2009, according to the industry tracker IDC. Due to the recent global economic downturn, DELL posted a 22% decline in PC revenue, which made up to about 60% of DELL’s overall revenue (Source: Reuters 7/10/2009 - Appendix 1.1). PC and laptops are DELL's core businesses. DELL’s PC business continues to grow in Asia and the focus will be in China and India for the next few years. 1.2 Storage Solutions - Cash Cow Although DELL’s storage business contributes to a small percentage of its total revenue, it has a market share of 9.2% market share and is ranked number 4 in the storage solution business.

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