Dell Inc. Case Paper

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Dell Inc. Case Paper | Publish your master's thesis, bachelor's thesis, essay or term paper

Dell plans on aggressively pursuing new commercial customers to take business from Hewlett-Packard and Lenovo. I would remove those because if the first objectives are met such as quality products, good services and competitive pricing, then corporate citizenship and financial statements will be achieved naturally. We will achieve this by delivering the highest quality products to the every day consumer and any size businesses, as well as developing innovative technologies and maintaining competitive prices. External Analysis According to Hoovers, the demand in the PC market is driven by technological advances, disposable income in the consumer market and corporate spending cycles.

The profitability of individual companies depends on supply chain efficiency and ancillary products and services. This makes it to where large companies, such as Dell, HP and Lenovo have advantages in leveraging extensive marketing budgets and sales channels, securing component discounts, and manufacturing efficiencies and small companies can compete by offering unique products or localized service and support Hoovers, There seems to be two approaches depending on the attributes of the company.

The U. The Chinese competitors Acer and Lenovo seem to be willing to compete on a low-cost basis. There is almost no hope of differentiating the products since all of them, with the exception of Apple, have to run the current Microsoft Operating System. Additionally, there isfull penetration in all dealer networks by almost all brands, and significant Internet sales as well. Apple seems more forward-looking and is working to maintain its niche market while expanding into the mobile market.

This market is completely saturated, and market growth, in terms of units sold, is almost stagnate. The players now face a zero-sum game. This may explain why IBM chose to exit the field. Worldwide PC shipments suffered the steepest decline ever in the first quarter of According to IDC, the industry shipped a total of The PC industry continues to suffer from the rise of smartphones and tablets, which are gradually replacing PCs as the primary computing device for many consumers Prafulla, Below you can see the decline in personal computer orders across all competitors: 8 9.

This means that anyone can enter and make a convincing marketing pitch. They will have to understand that this pitch will be primarily on the basis of price. Luckily, to actually manufacture PCs requires a significant amount of capital investment. When coupled with the low net margins and high risks inherent in this industry, raising such capital seems unlikely.

The suppliers in this industry are in an interesting position. There are onlytwo major players in the processor market, Intel and AMD, and all manufacturers support both brands. Additionally, there are no major functional differences between them. This leaves the PC manufacturer agnostic with respect to processors.

The other components of the PC are largely commodity items, so there can be no pressure from these suppliers either. Since the PC has become a largely commoditized item with almost no switching cost or brand loyalty, the buyers tend to buy based on price.


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Buyers will buy almost any brand that matches their price point. With increasing technology capabilities that allow for the development of applications and products from anywhere in the world due to the cloud, Dell needs to find a way to become the premier supplier for businesses and developers.

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The more technically inclined the population gets, the more opportunity Dell will have to sell their products. This is not just limited to large businesses. Education has been revolutionized by technology, students are being asked to access information through the Internet as opposed to libraries and books,which was the case 20 years ago.


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  • Dell Case Study Essay!

The individual consumer still represents a large opportunity for the PC industry. As soon as a product is introduced, there are 5 different variations that will follow with feature upgrades from competitors. Dell needs to start innovating and stay in front of the technology in order to remain competitive.

For a more in depth view at the analysis taken to reflect these statements, review Appendix B.

If you look at the ads, you'll see that the focus is not on the product or even on the users, but what they're doing with it," Mr. Roman said Bulik, Dell scored a higher 11 Dell is an old brand when it comes to computers and other electronics, but recently they started manufacturing laptops and they have grown so fast that today they have more models than one can remember LPTPS, This brand is mostly known for manufacturing standard laptops and all they care about is delivering quality.

Laptops from HP can be a little expensive but surely they are worthy of their price. Acer Group and Asus are ranked among the top 5 brands in personal computers. The market share rankings usedin the Competitive Profile Matrix determined the ratings the companies received. Michael Dell has argued that revamping his company into a 13 Going private gives Dell, Inc. Dell plans to double its store count and beef up its sales force in China during the next few years. They also plan to expand their reach into smaller cities as it looks to offset the harsh impact of rapidly falling personal-computer sales worldwide.

Dell, which has 10, sales outlets in China, will also focus on developing its tablet business Smart Brief, We have quite a large presence there and I personally visit the country few times a year. Lenovo and HP have also targeted China and India as part of their global expansion strategy so it makes perfect sense for Dell to focus their expansion in these regions as well in order to maintain market share. One of the challenges that Dell faces in its current market is their followership strategy. Dell invests far less in technology than its competitors, which means they will always be one step behind from the industry.

Dell will need to find a way to re-invent the PC standard and develop features that keep it relative to consumers. With the exception of Apple, the majority of the PC market falls within this category. It is difficult to differentiate in the PC industry since the standard of the PC has been determined for many years.

Strategic Management - Case Study: Dell Inc.: A Strategy Case Study in the Computer Industry

While consumers are interested in a low cost product, the quality of the product is still extremely important to them. Substitute products such as smart phones and tablets are differentiation enough in this market and would fall in the Type 3 category. Apple is focused on a more specialized consumer that is considered price insensitive, which is why it falls in Type 3 as well.

In order to employ the Best Value strategy, Dell should perform value chain activities more efficiently than HP and Lenovo.

Essay on Dell Case Study Part a

Such activities would include restricting the plant layouts, mastering newly introduced technologies such as cloud computing, using common parts and simplifying the design of their computers. They should partner with Amazon, Google and Rackspace to build a more efficient, green energy powered server. Dell should invest in their current chat support and online knowledge center platforms.

This opportunity would allow Dell a temporary market share increase while its competitors work to catch up. With younger generations becoming more technologicallysaavy, Dell has the opportunity to create brand loyalty with students and teachers that will eventually become consumers. The ST strategies are: 1 Leverage theBoomi acquisition to create a better integration of cloud apps and on-premise apps.

Boomi has the opportunity to become the choice of cloud application dashboards if built properly and priced competitively. This will help to gain cloud computing market share in global regions such as China and India. The WT strategies are: 1 creating a new tablet or smart phone that can compete with the likes of Apple and Android systems and ensure that it is competitively priced. This will lower the cost for supply chain, improve quality production and reduce manufacturing dependency.

Dell falls under the Defensive category in the Space matrix Appendix H.

1E Case Study: Dell

It reflects that Dell has a very weak competitive position in a negative growth industry. With PC sales decreasing industry wide and their 3 market share ranking, the Space matrix reflects Dell accurately. It has a high relative market share position, ranked third at According to this matrix, product development 17 Then from to portable PC shipments will grow to million or a rate of The IFE score of 2. Based on the information used for the IE, Dell is in a Grow and Build state, which recommends that backward, forward and horizontal integration, market penetration, or market and product development strategies are put in place.

Strategy and Objective Recommendations I recommend that Dell continue with their plans for global expansion. I would however, recommend that they slow down the rate of expansion of their new data centers. The current debt to capital ratio is hurting Dell from making all of the investments they need to make in order to innovate. If they balance their investments between global expansion and innovation, they have a better opportunity of meeting their goals to deliver great products and services to their PC consumers.

I would suggest they focus on the quality of the products they are building and not so much the quantity that is being produced. While market share is important, the quality of the products that are 18 In order to be the most successful company in the world and in order to deliver the best customer service experience, they have to be innovative in technology. I would recommend they invest additional resources into their recent acquisitions, Boomi and Perot systems, so they can stay ahead of the curve in the hardware and software needs of the cloud computing industry.

Dell will continue to lose traction and customer loyalty if they do not keep up with their competitors and innovate.

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Based on the recent buy out from Michael Dell and Silverlight and the recent I assume that Dell is aware of a need for a new strategy or they would not have acquired cloud computing and software development companies. IX:Recommended Implementation Plan 19 Dell needs to focus on reducing company debt and reducing the manufacturing cost of their hardware products.

Dell will also need to increase marketing and advertising spending in order to compete with market saturation and market traction of Asus and Acer, which are not too far behind from Dell. Dell could avoid these problems by diversifying the countries they expand their datacenters in, by focusing on the quality of their products to ensure they are superior to their competitors, and continually analyzing their market needs to ensure their strategy is aligned with what consumers are asking for.

Strategy Review and Evaluation Since stock price will no longer be available as measure of success for Dell, the evaluation method I recommend to determine whether or not these proposed strategies global expansion, improved product quality and robust customer service are successful is to continuously review and measure: 1.

Global PC sales trends 20 Product quality reviews from consumers 4. Customer service reviews The strategy recommendation around the innovation of new products is more challenging to measure than the others. Dell will need to determine a new products success based on reviews from analysts and customers, as well as sales and profit margins. Case Dell, Inc. La Salle University pp Bulik, B. January 9, What do you do when your business outpaces your brand?

The process identified the issues Dell has with providing chipsets when needed. Upon further review several factors contributed to this delay. Whereupon the causes of the delays occurred various alternatives were presented to improve the contributing factors causing the delays in providing chipsets.

The use of a completely numeric table is beneficial because of the ease in which individuals can locate important information like the modified cost per box figure instead of using strictly a text format that is cumbersome and confusing. The data outline makes comparisons between each manufacturing option easy to read and to identify large discrepancies. The ability to compare quickly and contrast variables assists in eliminating options that do not offer the solutions that Dell is seeking. Vital and important information can quickly be found without reading several pages of text and numeric values.

The use of process charting to improve understanding processes leads to improvements in performance.