Essay on SGI Versus Dell Case Analysis

G.G. Dess, G.T. Lumpkin, M.L. Taylor, A.A. Thompson, and A.J. Strickland III, Strategic Management (Boston, McGraw Hill, 2004) pp. 141-148.

Hunger, J. D., & Wheelen, T. L. (2011). Essentials of strategic management (5th ed.). Upper

Present CEO and chairman of the board Michael Dell founded Dell in 1984, as a leading technology provider that designs, develops, manufactures, and supports PCs, software and peripherals, storage and servers, and associated services. With operations in four geographic areas and additional business centers and manufacturing sites in more than 20 locations around the world, Dell is able to reach more than 24,000 retail locations worldwide. Dell’s ability to process in-depth customer knowledge and the tailoring of solutions to the specific customer, through a direct customer sales model, catapulted the company in 2008 to the top PC provider in the United States and second worldwide in terms of sales.

Dell’s acquisition strategy is successful as the company strives to dominate the global market in technology resulting in higher margin offerings and short term profitability. The company’s most recent acquisition is EqualLogic, Compellent storage, and KACE systems management technology has led to Dell growing margin even as it increasingly sheds many of the third party products for which it receives lower margins (Kovar, Joseph F., 2011).

Here, a long haul vital arrangement and rebuilding arrangements are outlined and executed to explain the issues of a wiped out organization.Dell is making moves to turnaround its business and recuperating from misfortunes and decrease in its overall revenues.

Hitt, M., Ireland, R., Hoskisson, R. (2013) Strategic Management: Competitiveness & Globalisation, 10th edition, Cengage Learning

Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86(1),

The strength of the company is the loyalty of its brand and its talented management team and workforce. Another strength is the organizational vision which gives employees a view of the future and something to believe in and something that can be realistically achieved. The weakness of the company is that of the expansion into new markets. They need to make sure they stay focused on the creativity and innovation of products and not over focus on expansion. If they over

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.

Look at the Core Competence of Dell What part has the Ecosystem played in Dell’s growth? What is happening now? KPI’s Conclusion

Amidst an emerging U.S. marketplace opportunity, Atlantic Computers tasked the newly appointed product manager, Jason Jowers, with marketing and selling the company’s new product, the Atlantic Bundle. A server, software combination, the Atlantic Bundle would offer performance up to four times faster than the competitions standard speed, all within one machine.

With all potential tragedy comes that defining moment of greatness, in their second year of operations the company launched their Intel 486 motherboard. Only slightly beating the American powerhouse IBM to market, this startup could not even afford the processors needed to make their product functional. This story of dedication and ingenuity caught the eye of the Intel Corporation, which was fronting for an outside supplier for motherboards to their growing line of merchandise. These organizations continued to foster a symbiotic relationship, which grew into early access to enhanced processors that would be unavailable to the marketplaces’ other competitors. As time progressed and the firm’s reputation grew, they were able to forge similar relationships with

Intel states that they have made significant capital and R&D investments in their manufacturing network. This enables Intel to have more direct control over their design, development, and overall manufacturing process. In conclusion, this networking connection allows Intel to have complete control over their entire company process compared to their competitors who use third-party manufacturing, and assembly plants at a higher cost. Lastly is that Intel 's products are optimized to operate on multiple operating systems. Intel has great key relationships and business partners which allows them to have a full range to be compatible with third party outlets and major companies like Mac OS and Windows.

HaaS (Hardware as a Service) has followed the footprints of technology – with the on-set of building sustainable uninterrupted business infrastructures. One of these innovative capabilities includes state of the art hardware services to support increasing computer demands. Today more companies have accepted the future of mobility and in order to equalize the pace between technology and business – HaaS has become a significant resource.

For the future, SGI still have a long way to go if it wants to be surviving in this market. First, We recommend that SGI should maintain its competitive advantage by continue its traditional way to focus on meeting customer needs, try to provide unique solutions for the toughest technology and business problems, and try to be the first to market with new component technology. Secondly, SGI should try to create more products and services by using its unique and valuable skills like server design and cooling technology in order to gain more customers and competitive advantages. Finally, try to make some cooperation with its competitors. There are no everlasting friends or everlasting enemies in the world. There are only friends with the same interest.