Matching Dell Case Analysis

1043 Words Apr 19th, 2014 5 Pages
Matching Dell

Outline with General Questions

Read the following instructions before proceeding. 1) Write in a continuous, narrative style within each question. Keep section headings. 2) The questions in the outline are to help you analyze the case and develop your own thought. 3) Limit your memo to three pages of text. Diagrams and tables do not count as part of the three pages of text. Do not use bullet points. 4) Double-check your grammar before submission. It matters! 5) Upload your write-up in Word format to WISE.

What can we learn from this case?

1) Barriers to imitation (entry): it illustrates how fit among numerous activities, tradeoffs between positions, historical commitments, and
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d. Threat of substitute products: Cause these products and services can’t be replaced in daily lives, and the strong presence of computers in nowadays, it is low. e. Competitive rivalry within the industry: It is high. There were tons of rival companies with similar products, services and distribution channel.

2. Business Model

Dell targeted two types of customers, one is relationship buyers which were large companies and institutions who were expected to place repeated orders for multiple PCs, the other were transaction buyers such as home computer users and small-to-medium businesses users who also can bring in for about 18% of the total revenues.
Dell encouraged their suppliers to locate warehouses and production facilities close to its operated manufacturing facilities, which helped them save lots of time from receiving orders to sending the products to the customer. It is really benefit for Dell’s business model because this is an important link of their production logistics pattern.
There are three parts of the business model deter potential entrants. The first one is Dell’s Direct Selling Model which decreased the costs of goods sales; the second one is location advantage which decreased their working processes time; the third one is switching cost which could not been achieved easily. 3. Performance

Dell received big…

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