Case comprehension
Dell Computer Corporation was founded in 1984 by Michel Dell, as a result of a growing demand for his pre-formatted hard-disks and upgraded IBM-compatibles.
Within a year, Dell introduces its first own-design computer system and in 1989, the company introduces its first laptop. The first laptop introduced did not live up to the Dell standards, and was therefore taken off the market again.
Dell had to solve the problem of balancing the production of laptops, desktops and servers. On the laptop market, which Dell was committed to re-enter due to its growing customer base, there were a number of technological problems. Dell had hired John Medica, lead developer of Apple computer’s Powerbook line, and according to him, only
…show more content…
The new challenge the company faces is to decide whether or not to continue the with the direct business model for the laptop market, or if the Dell should follow its competitors and sell through the retail market.
Situation analysis
Due to a changing market environment and existing product life-circle there is a need for the company to revise its present business units and to think about further expansion. There is a shift in customer demand and therefore it is crucial for Dell to recognize in what ways best to satisfy the customers?needs.
Dell is considering if re-entering the laptop market is profitable and advisable for the company and whether the distribution channel should be based on the direct model or the indirect model (the retail market).
Dell has successfully restructured the management team and hired John Medica, from Apple. Medica’s team is developing a new line of Dell laptops, and together with advanced and newly introduced technology this creates an expectation of large profits from the portable production.
The main issues related with entering the laptop market are: reduced degree of customization possible in laptops, competitors who are already established on the market, the customers that were once disappointed with Dell’s low quality laptops and how to distribute the laptops.
The reduced degree of customization indicates that production and assembly strategies may have
After a series of confusing initiatives and consequent losses, it was acquired by Acer, leading to the next dynamics shift, which critically affected Dell later on (mid 2000s), but in a much less fortunate way. Acer praised itself with 100% indirect selling, entirely contrasting Dell’s business model. Acer established its competitive edge with its portfolio of brands, offering an extensive line of less expensive products. In fact, in 2009, Acer passed Dell to be the world’s largest PC provider in unit terms, as its sheer size allowed the company to “tailor brands to customer segments and geography, while having the volume to demand discounts from component suppliers and contract manufacturers” (p.12).
Dell's business strategy combines its direct customer model with a highly efficient manufacturing and supply chain management organization and an emphasis on standards-based technologies. This strategy enables Dell to provide customers with superior value; high-quality, relevant technology; customized systems; superior service and support; and products and services that are easy to buy and use.
Dell is a computer corporation recognized for manufacturing computer systems through parts assemble. In 1983, Michael Dell saw an opportunity in using IBM compatible computers for a new assembly line that can be sold to local businesses. The idea as explained by Michael Dell, in one of his interview, is that in the early days of computers' manufacturing, companies had to be able to produce every part of the system. As the industry matured, companies started to focus on single parts and to become specialized in creating items that can be assembled with other parts to prepare a computer. As a result, Dell understood that to have a competitive edge in the market, they needed to
Dell has emerged as one of the biggest sellers in the PC market. From humble beginnings in 1983, when Michael Dell worked out of his campus dorm room, to 1996 when we reached $7.8 billion in sales, the source of our amazing success has been our unwavering focus on the customer, termed the “Dell Direct Model.”
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.
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
Now with the success in its hands Dell wants to take a larger bite in server and storage market. Also it wants to explore
Essay 1 : Introduction to Dell 3 Parts - Look at the Business Model in Particular (Is it fit for purpose?) – Then the Ecosystem – The Modularization and mention licensing Look the Paradigm of Dell Conclusion
other startups soon followed. Among them was Dell, incorporated in 1984. Like IBM, makers of IBM
The technology industry is one predicated on constant innovation. Products within the field must provide a compelling value proposition for consumers in order to properly maintain both margins and revenue. Technology companies, particularly those who manufacture products are realizing decreasing margins as the competitive environment matures (Bodie, 2004). Competition for foreign competitors has reduced margins and subsequently profit margins. Cost conscious consumers are now purchasing product based primarily on price rather than specifications. Combine this fact with the macroeconomic factors prevailing in the market and the industry has significant headwinds going forward one year from now. This is particularly true of Dell who has seen an erosion of market share due to the influx and demand of tablet computers. Less demand for traditional laptops has also decreased the profit and operating margins of the firm. Even within its own market, Dell has encountered significant competition for rivals such as HP, IBM, and Microsoft who recently announced its own tablet (Scheck, 2008). Below is a chart indicating markets share within the PC market over the last decade. Notice that market share gains after the housing market collapse have deteriorated. This reflects changing consumer sentiments regarding the overall purchase of PCs and heightened demand for alternative products such as tablets and notebooks.
Pearce and Robinson (2005), tell of Dell’s innovation in this manner, “Dell Computer built its first 10 years of unprecedented growth by creating an organization capable of the speedy and inexpensive manufacture and delivery of custom-built PCs. Gateway and Micron have attempted to copy Dell for most of that time but remain far behind Dell’s diverse organizational capabilities” (p. 151).
Dell, Inc. is a multinational computer technology company that was founded in 1984. It is the third largest personal computer manufacturer in the world. The company became a public company in 1988, but then in 2013, became a private company once again (Dell).
As one of the pioneers in selling computers, Dell has been widely recognized as a company which can deliver their sales to costumer effectively and efficiently by eliminating intermediaries’ channels. By selling their Personal
Dell is among the world's leading computer manufacturers that has transformed and diversified into variety of business segments over the years. Products range from Dell PowerEdge servers, Power Vault, Dell EMC storage systems as well as PowerConnect switches for corporate clients. For individuals and professional customers products range from Dell Precision workstations, OptiPlex desktops, Dimension desktops, Inspiron and Latitude notebooks. Apart from these core products, the company also offer products and services range including printers, projectors, Axim handhelds, and other accessories. More recently, the company has announced intentions to explore LCD television/computer monitors as well as digital music players
• Dell computer was founded by Michael Dell at age of twenty one in his dorm at the University of Texas, Austin. Initially the name of the company was PCs Ltd in 1984 but later it was changed to Dell Computer in 1987 when company got listed in stock exchange. • The company started with small operations through PCs by buying retailers surplus stocks at cost, then powering them up with graphics cards, hard disks, and memory before reselling them. • Dell’s strategy