Dell Online Essay

1145 Words5 Pages
Dell Online

Dell Computer Corporation’s Michael Dell’s decisive and apparently uncontested vision for the sustained growth of the corporation hinges on advancing the Dell Direct Model. A distinct advantage displayed by Dell versus his closest competitors in this arena-Gateway, Compaq, Hewlett-Packard and Digital Equipment seems to be the synergy created by the integration of marketing communication efforts and their ability to accurately adjust sales staff and production levels to meet the corresponding demand.
The primary problem facing Dell and its competitors is the general softening of the PC and PC server/peripheral markets during a time when the industry is in the maturity stage. The mature industry in this case finds that
…show more content…
last quarter carried the Dell name (Dell, 2001).2 This past fiscal quarter Dell overtook its No.1 competitor, Compaq as the world’s leading direct computer systems company and stands as a premier supplier of technology for the Internet infrastructure.
In similar fashion, Dell has been gaining market share in the higher margin PC server market segment, which is closely tied to and compliments the corporate PC market. The PC server market has been dominated by Compaq, Hewlett-Packard and IBM, however Dell announced Q4 Fiscal 2000 results that were surprisingly strong in this product segment. For the quarter, Dell shipments were up 43 percent overall, more than four times the industry rate and at multiples of the industry in all product categories, customer segments and geographic markets. Shipments of Dell Power Edge servers increased 63 percent and Dell accounted for 30 percent of global server growth, expanding at more than three times the industry rate and adding two full points of market share (Dell Delivers, 2001). 3
Companies in industries identified to be in the maturity stage understand that it is critical to increase market share domestically and aim toward expansion in less mature and emerging international markets. Growth at twice or more the overall industry rate in most geographic areas and product markets is a goal for Dell during the 2001 fiscal year.
So, to revisit the problem – a softening, or flat at

More about Dell Online Essay

Get Access