Dell's Strategy

Table of Contents

Introduction3

Discussions4

Products and Services Offered By Dell4

Geographic Scope of Dell5

Dell's Internal Analysis6

Dell's External Analysis8

Conclusion10

References11

Dell's Strategy

Introduction

According to Michael Dell, “Technology is about enabling human potential”. This was the vision behind Dell. Dell was founded by Michael Dell in 1984. The concept behind Dell was quite simple. The founder of Dell starts selling systems directly to the customers. The headquarters of Dell are located in Round Rock and Texas. The company operates worldwide through its subsidiaries.

The core business strategy of Dell is its direct customer model and highly efficient logistics and manufacturing system. Dell has enhanced its strategy by expanding new distribution channels to reach more business customers and individual customers not only in United States but all around the World. Dell also pursued the acquisition strategy designed to target selected areas of its business with more products, services and technology.

The goal of Dell is to provides excellent customer experience through offering superior value; high quality products, enhanced technology; customized systems and services; superior service and support; and product differentiations and services that are easy to avail. The market capitalization of Dell was growing very fast in 1995 and 1999. But there was a big decline in 1999-2001, the main reason behind this decline was the internet bubble and price competition among PC markets but again the growth of Dell accelerated in 2003-2005.

Again in 2005, Dell faced a big decline and lost its momentum of its products and market share mainly in Desktops, Laptops and Server segment to HP. In 2007 and 2008, Dell recorded its worst performance with very low return. Limitations in size and lack of innovative products like iPhone, it was a big challenge for Dell to generate revenue growth in a meaningful way (Park & Burrows,2001). In order to survive in the market, Dell has to change and reshape its strategy and re-evaluate its goals according to the new trends in the IT industry.

Discussions

Products and Services Offered By Dell

Dell has various specific brands specially designed to serve the needs of its different business clients from various organizations as well as the domestic customers. Dell offer various brands for business customers such as Optiplex; a desktop system for office use, Vostro; a brand offering small office desktops and notebooks,n Series; a system based on linux, Latitude; a notebook system serving business customers, Precision; high performance system and workstations designed for corporate customers, PowerEdge; high speed servers for business, PowerVault; a network attached storage system, PowerConnect; a brand for network switches, Dell compellent; a brand of storage area networks, EqualLogic; a brand to serve enterprise class (Edwards 2009).

Dell also serve Home customers with its brands such as Inspiron; a low price desktop and notebook system, Studio; a high performance desktop and notebook computers, XPS; another brand for desktop and notebook systems, Studio XPS; a system based on XPS and extreme multimedia capability, Alienware; a brand of gaming systems, Adamo; a brand of luxury laptop, Dell EMR; a system for electronic medical records ...