Matching Dell

3130 Words Nov 30th, 2012 13 Pages
Matching Dell
BA 4700 October 12th, 2010
Bing Bai Zexin Li Ian Ruehle Erin Strack Chun Zhang

Introduction

The Dell Computer Corporation was founded in 1984 by Michael Dell, who began the company by refurbishing IBM clones out of his dorm room for extra money. From the beginning and through the 1990’s, the company grew quickly and was very successful. Dell used a cost leadership strategy and focus on creating products that were already in the market place, but changed the timing of production and the method of distribution that was in place with the company’s competitors by assembling computers to order and selling directly to the customers. The company focused on creating value for customers and meeting their needs, but into the
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They also produced lines of servers and workstations.

STEP Analysis

Social and Cultural There has been a drastic move in cultural perspective since the new millennium. The gogreen culture has become a dominating force. The metro movement moves in a parallel to this as well. The majority rule now appears to be a young, urban, environmentally conscious, culturally sensitive populace. Dell had a primary focus on keeping a fact based relationship with their clients. The case clarifies that this allowed them to treat their clients fairly. They even kept a very clean cut and dry model in the corporate setting. This is a very efficient and productive way to guide business. This model can, however, fall victim to the metaphor of the double-edged sword. Being so cut and dry tends to give you the appearance of a faceless corporation. In a revolution of go-green and corporate compassion, the face your corporation wears is its lifeblood. Dell had no focus on retail stores. They knew that the profits were coming from the larger customers. As mentioned in the case it is hard to increase the awareness of the product when it is not often seen in the retail world. How is the general public to view your corporate face if they are unable to see it? Dell was careful to diversify their product line; however they were not diversified in the distribution of the products.

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