Dell Corporate Strategy

1499 Words Nov 23rd, 2008 6 Pages
Corporate Strategy
The economic activities performed by Dell encompass the development, manufacturing, sale and support of personal computers and computer-related products.
Since its foundation, the company has been based on the Direct Model, i.e. Dell has always tried and managed to create direct relationships with its customers, by selling products directly and without the participation of intermediaries. The sale has always taken place through a telephone service or via the Internet.
In order to accomplish its goal of being as fast as possible in the delivery of the customized products it supplies, Dell has created an ample network of manufacturing plants around the world. The corporation is present in each continent and in most of the
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Even on the manufacturing side, Dell seems to have been reconsidering its position. The company has not lately been as much as profitable it would like and some of the reasons for such performance have been allocated to the fact that the company owns its manufacturing plants. For this reason, the company would have approached some contract manufacturers to take over what in the 1990s was the envy of its competitors: its production plants.
The products that Dell produces encompass the following categories:
- Desktop PCs
- Mobility
- Servers and Networking
- Storage
- Services
- Software and Peripherals
From the figures issued by the company (see chart A), it is possible to understand the vastest product categories Dell relies on are those of Desktop PCs and Mobility, which account for more than 50% of the total revenues coming into the company. However, it is worth pointing out that the revenues originated by PCs are quite stable, since it is not possible to notice great increases in this business area, whereas the growth of the revenues in other areas, such as mobility or servers, are much more noticeable and reach even the double digits.
The corporation aims at attracting specific market segments, by marketing different brands. In fact, Dell produces a line of products completely destined to the market segment of business. In the class of BUSINESS PRODUCTS, the company’s advertisement stresses

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