Dell Strength and Weakness

986 Words May 2nd, 2008 4 Pages
Based on the external environment and the historical perspective of Dell, Michael Dell needs to realize that his nearly 20 year-old business model needs a dramatic change. He needs to get the product in customers hands (before point-of-sale), focus on quality customer support/service, and use customer indicators as a sign of what areas need improvement/enhancement within the company. Additionally, limited options based on narrow-minded perceptions (only using Intel chips) not only cost Dell market share, it also cost them on the bottom line (Operations). Not listening to the needs and wants of loyal consumers can result in a loss of market share, which is what Dell has experienced.

REQUIRED ACTIONS
In my opinion, Dell will only
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CONDITIONS FOR BUSINESS MODEL CHANGE

I would recommend revising the business model when changes in the industrial environment occur. A firm must consider the Five Forces of Competition and strategically position themselves to maintain the company vision while developing alternative methods to secure market share and maintain a loyal customer base. Dell must also consider the external environment – how threats and opportunities can make or break the company (Hitt, Ireland, & Hoskission, 2007). In their case, they failed to analyze the foreign environment requirements, which resulted in lost sales because there were not enough retail stores (this problem has now been reconciled), and also failing to focus due care on what is stated as mattering most – customer support. The decision to outsource after-sales support was a severe mistake for the company that generated customer dissatisfaction.

COMMITMENTS FOR GROWTH & COMPETITIVE ADVANTAGE

The primary commitment to ignite growth and customer appeal is focusing on customer satisfaction; development of innovative products and services. Dell’s core competencies are providing the customer with exactly what they want, a custom technology product and the service to support it. By focusing on this competency, Dell has the ability to not only offer customizable
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