Essay on Dell Situational Analysis

• DELL sub divided its customer base into multiple categories, to identify unique opportunities and economies.

“To understand what makes Dell so great, you need to understand the power of Dell's Mission Statement, as well as its history, growth, and entrepreneurial founder Michael Dell.” (Farfan, 2017) Today Dell forms partnerships with retailers on a global scale while adding online ordering and customization. With Dell’s variety of services coupled with its desktop, laptop, and other products, Dell has become a large company

Dell’s competitive advantage was based on PC sold directly to the customer and cut out wholesale and retail, so that it can give customers lower prices, leading to higher sales. Dell’s website allowed customers to mix and match product features. Dell used information, which customers provided when they purchased online, as the reference for demands in real-time to input to suppliers, so that suppliers can change their production component matching Dell needs in short time (Jones, 2013).

Dell’s strategies have different elements that have allowed the company to reach its current market position. The pieces of Dells strategy fit together just like all the elements of a clock, all the major pieces rely on one another in order for the company to succeed as a whole. This has permitted Dell’s strategy system to work so well because of its excellent logistics system. The system works so well it has enabled them to manage multiple pieces of the strategy simultaneously without glitches. Dells sales force management is able to interact with millions of customers worldwide through direct selling that is hands on and user friendly. They also have sales representatives for major clients such as governments, institutions and corporate clients who then customise their order.

How Dell does it McGraw Hill Professional, 2006 In its March, 2005 issue, "Fortune" magazine dubbed Dell Inc., the "Most Admired Company in the U.S." Such high praise is nothing new for Dell.

Dell’s climb to market leadership was the result of a persistent focus on delivering the best possible customer experience. Direct selling, from manufacturer to consumer, was a key component of its strategy (2002).

Concerning corporate customer service by Dell and Compaq should be mentioned deep understanding of customer needs at Dell Corporation and 24/7 support against based on forecast production system with 64 days of delivery period. (see Appendix 4, 4.1 for detailed explanation)

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.

Having the low cost advantage Dell is able to expand the gap between cost and customer's willingness to pay. Therefore, they are able to satisfy their end-consumers, who are educated want product stability, high-end performance and low lifetime costs. They have served the US market and started to expand their market worldwide; in addition, they have

Dell is pursuing a diversification strategy by introducing many new products to its range. This initially has meant good such as peripherals including printers and toners, but now also included LCD televisions and other non-computing goods. So Dell competes against iPod and other consumer electronics brands.

The most critical shifts in Dell’s contextual factors, including industry dynamics, trends, technology changes and shift of the competitive landscape are following: The industry has changed significantly over the last 20 years. The traditional business model in the PC industry was inside-out, supplying machines based on orders from distribution, resell and retail channels, thus following the indirect selling concept. Dell’s direct model was at this time a new, challenging concept, taking orders directly from the end-consumer, and thereby, eliminating the middleman, costs and time. This was the initial crucial shift away from the traditional schema, allowing Dell’s quick

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.

Dell is the most successful company in PC industry of 21st century. It has shown phenomenal growth record over the past decades & listed as America’s third most admired company. Their core strength lies in Direct model offering closer customer interaction and Virtual Integration. This is giving a low cost advantage to Dell and its competitors are not able to imitate this model for all these years.

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.

Although Dell is an extremely successful company, there are areas of improvement and enhancement that should be considered. After a thorough analysis of Dell¡¯s IT tools, business model, IT infrastructure and competitive advantage, we have developed seven key suggestions. By implementing these recommendations, Dell can keep its high ranking in the competitive computer industry by increasing customer satisfaction, competitive advantage and superior value chain, without changing its principal operations to achieve these goals.