Essay Dell case

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Case comprehension Dell Computer Corporation was founded in 1984 by Michel Dell, as a result of a growing demand for his pre-formatted hard-disks and upgraded IBM-compatibles. Within a year, Dell introduces its first own-design computer system and in 1989, the company introduces its first laptop. The first laptop introduced did not live up to the Dell standards, and was therefore taken off the market again. Dell had to solve the problem of balancing the production of laptops, desktops and servers. On the laptop market, which Dell was committed to re-enter due to its growing customer base, there were a number of technological problems. Dell had hired John Medica, lead developer of Apple computer’s Powerbook line, and according to him, only…show more content…
The new challenge the company faces is to decide whether or not to continue the with the direct business model for the laptop market, or if the Dell should follow its competitors and sell through the retail market. Situation analysis Due to a changing market environment and existing product life-circle there is a need for the company to revise its present business units and to think about further expansion. There is a shift in customer demand and therefore it is crucial for Dell to recognize in what ways best to satisfy the customers?needs. Dell is considering if re-entering the laptop market is profitable and advisable for the company and whether the distribution channel should be based on the direct model or the indirect model (the retail market). Dell has successfully restructured the management team and hired John Medica, from Apple. Medica’s team is developing a new line of Dell laptops, and together with advanced and newly introduced technology this creates an expectation of large profits from the portable production. The main issues related with entering the laptop market are: reduced degree of customization possible in laptops, competitors who are already established on the market, the customers that were once disappointed with Dell’s low quality laptops and how to distribute the laptops. The reduced degree of customization indicates that production and assembly strategies may have

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