Dell Corporation Case Study
I. Introduction
Started by Michael Dell, Dell Computer Corporation is one of the world’s leading direct marketers of personal computer systems. Dell Computer Corporation designs, manufactures, markets, services, and supports a wide range of computer systems, including desktop personal computers, notebook computers, and network servers. In addition, it also markets peripheral computer hardware and software, as well as service and support programs. The success of Dell Computer Corporation can be traced to Michael Dell’s strategic vision and distinctive competency.
Until recently, the education market had been dominated by Apple Computer. However, when reports stated that Apple seemed to be leaderless and in
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It designs, manufactures, markets, services, and supports a wide range of computer systems, including desktop personal computers, notebook computers, and network servers. Apple Computer has always been the vendor of choice in the education market. When reports got out that Apple seemed to be leaderless and was in financial disarray, Diane Jeni (marketing manager responsible for the higher education portion of Dell’s ESL) wondered whether this uncertainty offered a window of opportunity for Dell to grow. This posed a challenge for Jeni.
Dell should aggressively aim to become the vendor of choice in the higher education market. With increased advertising targeted towards high school upperclassmen and college freshman, and the development of a student purchase program, Dell Computer Corporation may have what it takes to dominate the higher education market.
From the reports Jeni and her team collected, it was apparent that enrollment in higher education institutions was likely to increase over the next decade because of the projected number of high school graduates. In addition, they noted that the average age of college and university students was likely to increase. Exhibit 4 shows the increasing number of high school graduates. According to federal government estimates, approximately 62 percent of all high school graduates enroll in an institution of higher learning. The higher education market in the U.S. consists of more than 3,600 institutions of higher
This paper will discuss a company called Apple computers. It will further access the market forces and strategies used by apple.
Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.”
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.
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 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.
We chose to research Apple Incorporated, one of the most innovative companies of our generation. It is safe to say that nearly every one in the US and many foreign countries have used or at least heard of Apple products. We will be looking at the macroeconomic variables that impact Apple’s business as well as how the current developments in the industry have impacted Apple’s financials and we will also look at how Apple competes with other firms in the same industry.
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.
Apple Inc. has been dedicated to innovation ever since the company was first formed. Apple's recent breakthroughs were a result of a new technologies convergence upon the "digital hub" strategy (Mortensen, 2010). This strategy has served Apple well; especially during the last few years. The iPad, iPod, and iPhone were all born from this strategy. Furthermore, producing these innovative, user friendly, and design oriented products has earned them a considerable amount of customer loyalty.
The repositioning of the company in 2007, from Apple Computer to Apple Inc, was a clear indication that the main focus was no longer attributed to the PC market. With this change in prioritization, one could imagine that Apple’s competitive position in regards to PC’s would be weakened, due to capital and R&D efforts being directed elsewhere. But this is not the case. In fact, Apple’s new broadened portfolio and “hub” strategy has only helped to fuel the PC sales even more. This development boils down to several factors, including a strengthened brand image that the new products have contributed to, and the success of the “ecosystem” that the company has created around its products. Although Apple is now making its profits in many new areas, the PCs still account for a great part of the total sales. The price for a MAC is relatively high compared to the competition, and Apple is able to keep the price at that level because their PCs serve the luxury end of the market. Many design conscious consumers prefer the MAC and this niche strategy contributes to securing Apple’s position. The company actually tried to introduce a cheaper PC version, but this was not a success.
This additional elasticity in Apple’s business strategy shows its aspiration to conquer Dell, HP and Microsoft, done with a exceptional and groundbreaking mixture of digital media and personal computer creations.
Introduction The intention of presenting this report is to give a full strategic appraisal and evaluation of Apple Inc. In 1976, the company was founded in a garage in Santa Clara, California. The American multinational corporation mainly involves in designing and marketing consumer electronics, computer software and as well as personal computers. Differentiation is the current strategy position of Apple Inc. There are five main firms in the PC industry and among them; the world’s leading brand is Dell. Apple’s major target is to sustain their present strategic position and to take over the market position as a leader. The key stakeholders include Steve Jobs, employees, lenders and the government.
Since 1976 Apple’s innovation has helped the company become a market leader in computer and mobile electronics. Through this time the company has faced a number of challenges either it be an internal power struggles or criticism from the media for certain aspects of their business model. This report covers five different issues that the company is facing or may face in the future.
Apple has always been something of a trendsetter in the tech space. Its product history since Steve Jobs’s return in 1997 gives us a solid list of examples to choose from, from its very first iPod, to Apple’s PowerBook (and later MacBook) lines, to the iPhone and the iPad. Apple’s history is dominated by products that existed before Apple had a crack at them - but it was Apple who simplified them, made them appealing on a much wider scale, and ultimately made them objects of desire for the masses.
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
Nowadays, Apple has positioned itself to be an innovator in the personal computer industry and Apple has developed by offering modern products compared to its competitors. According to Apple’s mission statement last year, “Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile media and computing devices with iPad.” (Business Management,