Dell Strategic Management Assignment/Case Study Solution

Dell Strategic Management Assignment/Case Study. It reviews the organizational structure, vision, mission, SWO , !"S "# Analysis, Strategic $rou% Ma% Com%etition and !roduct !ositioning Ma% o& Dell. his is a sam%le %a%er. I& you li'e to order your own %a%er, %lease Clic' (ere

Introduction
his re%ort undergoes a strategic management overview o& Dell, one o& the leading !C vendors o& the world with a uni)ue o%erations model &ocusing on *uilt to order and direct to consumer &ramewor's. he re%ort *egins with a com%rehensive overview o& the com%any+s o%erations, its hierarchy, location and %rinci%le o& logistics. An understanding o& the vision, mission and o*,ectives allows &or the strategic analysis to *e %ut into conte-t and %ers%ective. Our &irst strategic analysis tool is the SWO analysis &ollowed *y an internal and e-ternal &actor analysis. his is accom%anied *y a WOS matri- allowing the re%ort to %in %oint s%eci&ic strategies which may hel% the organization cash on its strength and o%%ortunities to o&&set threats. An overview o& the li&e cycle o& the industry is &ollowed *y a !"S analysis. .nderstanding the %olitical &actors is critical and along with the location %rinci%les e-%lained in the &irst section / allows us to %in %oint some strategic direction &or the com%any. Similarly the economic, social and technological &actors are discussed &or the industry and the im%lications &or Dell on a strategic level. A com%etitive analysis with other names in the industry is done through a %roduct %ositioning ma% on the &actors o& %rice and customization.

Overview of product and size

Dell *ecame the leading !C 0endor o& the world in 1223. One o& the most uni)ue %ro%osition o& Dell is the *y %assing o& reseller through a direct to &inal *uyer strategy. his accounts &or 42 %ercent o& its sales leading to the re%orting o& higher %ro&ita*ility and revenues &or the com%any. his direct to *uyer results in a consumer intensive strategy is called *y many as the 'ey to the success o& Dell+s model o& *usiness 56raemer, et al., 12227. he direct relationshi% with consumers not allows &or reduced costs, *etter inventory decisions and increased revenues *ut also allows &or a *etter understanding o& what the customer re)uires. he !Cs are there&ore *uilt to the e-act s%eci&ications as re)uired *y the customer. his is a shar% contrast to the conventional model o& !Cs which are *ased on vendors who ma'e attem%ts to %redict the demands o& the mar'et. his *uilt to order strategy hel%s Dell in multi%le &ronts, reducing overheads and increasing return on investments at the same time as allowing &or a *etter understanding o& the mar'et and consumer needs. his s%eci&ic strategy comes with several com%lications in o%erations. he o%erations need to ma'e sure that all %arts and com%onents are )uic'ly availa*le so that customized con&igurations can *e handled )uic'ly. he ca%a*ilities o& %roduction and logistics o& su%%lies must *e

o%timized in order to ma'e sure that there are )uic' turnarounds and orders are %rocessed e&&iciently. he re)uirements o& such an o%erations means there is an interesting structure o& logistics. here is a &ocus on outsourcing o& activities which are non strategic while the em%hasis is laid down on 'ey strategic areas. here is a relationshi% intensive strategy with %artners who %rovide the com%onents and elements o& the !ersonal Com%uters so as to %rovide value added %roducts. he actual %roduction networ' o& Dell is s%read around the world ranging &rom America, "uro%e to Asia. Some o& the %roduction cycles are outsourced to other manu&acturers. here is also a reliance on the su%%ly o& several com%onents such as CD 8OMs and Dis' Drivers to outsiders. !artnershi% with so&tware %roviders such as O&&ice also allows it to &urther increase the value o& &inal %roduct. Outside %artners are also used &or installation, re%airs on the site and integration o& the overall systems. 8esellers are used &or recommendation o& the %roduct to consumers.

Locations
he location &actor o& Dell is critical to the e&&ectiveness o& its *uilt to order model. he *asic decisive &actor in choosing a location is to understand how costs can *e minimized, *uilt to order models can *e e-tended and direct sales can *e ma-imized around the world with minimum time and ma-imum customer satis&action. S%eci&ic locations and their selection de%end u%on la*or rates in an area, the trans%ortation in&rastructure, %olitical *arriers and the closeness to high demand areas. he head)uarters originally was in Austin e-as, where the com%any was &ormed. Manu&acturing units e-ist in ennesse as well. Currently the manu&acturing units in America are limited to these two areas. 9razil has a manu&acturing unit o& Dell in "ldorado do Sul. his location %oint was decided on the *asis o& the need to su%%ly the South American mar'et. here were also %olitical &actors such as the avoiding o& tarri&s *ecause o& the choice o& location. he "uro%ean, Middle "astern and A&rican mar'et are com*ined as one sector: the head)uarters o& which is *ased in the .6. Ireland is used &or a %roduction unit *ecause o& the ta- incentives availa*le over there 5#oughran, 12227. #ogistic hu*s and technical su%%ort units are also de%loyed around the continent. Manu&acturing units are %laced strategically in the Asia;!aci&ic region as well. Malaysia *ecause o& its a%%ro%riate la*or rates, %olitical incentives and closeness to su%%liers were chosen as the central location. !roduction units are %laced around the continent including one in China with close su%%liers in aiwan.

Hierarc y
he organizational hierarchy can *e seen as &ollows<;

!ision" mission" goals and o#$ectives

!ision
Its the way we do business. Its the way we interact with the community. Its the way we interpret the world around usour customers needs, the future of technology, and the global business climate. Whatever changes the future may bring, our visionDell Visionwill be our guiding force he vision statement is a*le to %ut &orward one o& the most im%ortant %rinci%les *ehind the o%erations o& Dell. he industry that Dell o%erates in is one o& the most dynamic and ever changing one in the international mar'et. =luctuation o& technology and consumer demands mean that change is the only constant. his is why the lac' o& %rediction leads to the vision statement which &ocuses on the inter%retation o& strategy through consumer needs, technology trends and international *usiness climate.

Mission Statement
Dells mission is to be the most successful !omputer !ompany in the world at delivering the best customer e"perience in mar#ets we serve. In doing so, Dell will meet customer e"pectations of$ %ighest &uality 'eading technology !ompetitive pricing Individual and company accountability (est)in)class service and support *le"ible customi+ation capability ,uperior corporate citi+enship *inancial stability

%usiness O#$ectives
Dell+s *usiness o*,ectives include )uality, leading technology, com%etitive %ricing and &le-i*le customization su%%ort. hrough a strong )uality assurance team and in house ca%a*ilities to *uild most o& its %roduct it has *een a*le to develo% a strong >A engineering &unction. hrough a %artici%ative culture o& em%loyees and a drive to meet &uture mar'et needs it is a*le to incor%orate all develo%ment o& technologies in its e-%ansion. Its *usiness model has always *een success&ul to stay on to% o& technology.

.tilizing a *uild to order model it has *een a*le to incor%orate leading technology as well as %rovide &le-i*ility o& %roducts to consumers. hrough the removal o& middle men in sales as well as develo%ing in house ca%acities and o%timized inventory management: Dell has also *een a*le to achieve cost leadershi% in many mar'et segments o& the com%uter industry.

Culture" !alues and History

Dell has a highly customer centric culture. =ounded *y Michael Dell in 34?@, the com%any was &ounded to serve the customers directly with !Cs that were a*le to meet s%eci&ic needs. he com%any was named !C+s limited at that time. here has *een one *elie& that has always driven the organization right &rom the *eginning which is to *e com%letely consumer &ocused to the %oint that they are a*le to incor%orate customized re)uirements during ordering %rocesses. he com%any was a*le to go %u*lic within @ years. Dell made its entry into the la%to% mar'et in 3443 mar'ing an aggressive growth rate in the &ollowing years *ecoming one o& the to% A com%uter com%anies o& the world. Dell *elieves in high turnover solutions which are also availa*le on their we*site. A technology savvy culture with a &ocus on consumer needs drives the o%erations and initiatives at the com%any. Another driving &actor &or Dell has *een delivering the com%uters directly to consumers. his *uild to order strategy has removed the middle man, increasing turnovers and decreasing costs &or all %arties involved. his allows Dell to sell at a highly com%etitive rate as com%ared to the com%etition. It is this consumer driven culture, innovative values and cost o%timization that sets Dell a%art 5Dell, 34447. Com%any Culture as cited *y the com%any+s we*site 5www.dell.com7 includes ; Meritocracy& Ma'ing sure that em%loyees are rewarded &or doing a good ,o* in order to en&orce *etter %er&ormance and motivate the human resource in meeting measura*le o*,ectives ; Direct 'elations ips& =ocuses on a relationshi% intensive strategy internally and e-ternally ma'ing sure that the environment is *ased on two way communication ; (mpowerment& One o& the most crucial &actors o& an innovative com%any is em%owerment. (ighly em%loyee %artici%ation culture is seen at Dell.

S)O* Analysis
Strengt s
3. he *usiness model o& dell which &ocuses on a *uilt to order &ramewor' where the middleman is removed and !Cs are sold directly to the end *uyer 1. Strong strength o& sales strategy through a variety o& mediums ranging &rom conventional to e;commerce

B. "limination o& the mar' u%s added *y the reselling %arty through the direct sales to end *uyer resulting in lower costs to consumer without cutting down margins &or Dell @. 8elia*ility that comes out o& a *uilt to order model / reduction o& over;heads related to large inventories and &inished goods. A. One o& the industry leads in the !ersonal Com%uter mar'et C. Considera*le num*er o& manu&acturing units across the world D. Strong *rand value and %ower in 919 as well as 91C ?. Signi&icant margins over costs o& %roduction *ecause o& the direct sales to the end *uyer 4. A highly relationshi% intensive strategy starting &rom the consumer sector and e-tending to the cor%orate and government sectors 32. (olds a large share in the mar'et o& %ersonal com%uters 33. hrough the *uilt to order model o& %roduction, Dell is a*le to achieve a )uic' turnover as well as decrease the stoc' re)uired in the inventory 31. (igh level o& )uality assurance through e-tensive testing in the %roduction %rocess 3B. A wide array o& customers including s%eci&ic mar'et segments such as hos%itals and universities 3@. o% ran'ed Server on Intel technology *y the %u*lication echnology 9usiness 3A. Strong understanding o& individual customer segment needs 3C. Wide array o& methods o& advertising and mar'eting 3D. here are not a lot o& %roduction units and regional o&&ices in the west / including the .nited States 3?. =or some consumers it is an inconvenience that Dell !Cs cannot *e %urchased through retail outlets 34. It has not *een a*le to %enetrate into several international segments as a leading su%%lier even though the num*er o& locations in the international mar'et are great 12. In the %rinter mar'et it does not %roduce its own %roducts / rather %urchases it &rom #e-mar' 13. here is a strong de%endency on outside su%%liers &rom &oreign lands which leads to a strong de%endency on &uel su%%ly and their %rices leading to &luctuation 11. he size o& the com%any comes in the way o& &aster growth 1B. here is a continuing demand &or %ersonal com%uters

1@. here is a strong and evolving mar'et &or note*oo's and ta*lets 1A. here are strong o%%ortunities o& %artnershi% in the mar'et including one %otentially with Microso&t 1C. here is a strong margin o& e-%ansion in consumer electronics 1D. Consumer s%ending on technology is relatively untouched com%ared to other %roducts 1?. Strong growth in the mar'et o& color %rinters 14. here are more mergers and ac)uisitions ha%%ening in the industry / a threat o& strong consolidation trend in the !C industry B2. he in&luence and de%endency on outside su%%liers means increasing oil %rices are cri%%ling the s%ending o& the consumers on !Cs B3. he demand o& commercial usage o& !Cs are not increasing at the same %ace B1. Strong com%etition continues to act as a threat BB. he growth o& the mar'et has slowed down B@. Strong &luctuation in %rice BA. Com%uting %ower &ees has reduced BC. he mar'et has widened BD. he &luctuating value and devaluation o& currency continues to ha%%en in the international mar'et

)ea+nesses Opportunities * reats

Source< 56hari&, 122A7 and 5Dell, 34447

,ey (-ternal .actors

Opportunities here is a continuing demand &or %ersonal com%uters here is a strong and evolving mar'et

)eig t

'ating

)eig ted Score .B .@

.3 .3

B @

&or note*oo's and ta*lets here are strong o%%ortunities o& %artnershi% in the mar'et including one %otentially with Microso&t here is a strong margin o& e-%ansion in consumer electronics Consumer s%ending on technology is relatively untouched com%ared to other %roducts Strong growth in the mar'et o& color %rinters * reats here are more mergers and ac)uisitions ha%%ening in the industry / a threat o& strong consolidation trend in the !C industry he in&luence and de%endency on outside su%%liers means increasing oil %rices are cri%%ling the s%ending o& the consumers on !Cs he demand o& commercial usage o& !Cs are not increasing at the same %ace Strong com%etition continues to act as a threat he growth o& the mar'et has slowed down Strong &luctuation in %rice Com%uting %ower &ees has reduced he mar'et has widened he &luctuating value and devaluation o& currency continues to ha%%en in the international mar'et

.3

.@

.2A .2A

1 1

.3 .3

.2A

.3

.2A

.3A

.2A

.3A

.21A .3A .3 .21A .21A .2A .2A

1 B 1 @ B B 1

.2A .@A .1 .3 .2DA .3A .3

*otal

0123

Internal .actor (valuation 4I.(5 Matri-

,ey Internal .actors

Strengt s

)eig t

'ating

)eig ted Score

he *usiness model o& dell which &ocuses on a *uilt to order &ramewor' where the middleman is removed and !Cs are sold directly to the end *uyer Strong strength o& sales strategy through a variety o& mediums ranging &rom conventional to e;commerce "limination o& the mar' u%s added *y the reselling %arty through the direct sales to end *uyer resulting in lower costs to consumer without cutting down margins &or Dell 8elia*ility that comes out o& a *uilt to order model / reduction o& over;heads related to large inventories and &inished goods. One o& the industry leads in the !ersonal Com%uter mar'et Considera*le num*er o& manu&acturing units across the world Strong *rand value and %ower in 919 as well as 91C Signi&icant margins over costs o& %roduction *ecause o& the direct sales to the end *uyer

.3

.@

.2A

.3A

.21A

.2DA

.2A

.3A

.3 .2A .2A

@ @ @

.@ .1 .1

B .2A

.3A

A highly relationshi% intensive strategy starting &rom the consumer sector and e-tending to the cor%orate and government sectors (olds a large share in the mar'et o& %ersonal com%uters hrough the *uilt to order model o& %roduction, Dell is a*le to achieve a )uic' turnover as well as decrease the stoc' re)uired in the inventory (igh level o& )uality assurance through e-tensive testing in the %roduction %rocess A wide array o& customers including s%eci&ic mar'et segments such as hos%itals and universities o% ran'ed Server on Intel technology *y the %u*lication echnology 9usiness Strong understanding o& individual

.21A

.2DA

.2A .2A

B B

.3A .3A

.2A

.3A

.2A

.1

.2A .21A

@ B

.1 .2DA

customer segment needs Wide array o& methods o& advertising and mar'eting

.21A

.3

)ea+nesses
here are not a lot o& %roduction units and regional o&&ices in the west / including the .nited States =or some consumers it is an inconvenience that Dell !Cs cannot *e %urchased through retail outlets It has not *een a*le to %enetrate into several international segments as a leading su%%lier even though the num*er o& locations in the international mar'et are great In the %rinter mar'et it does not %roduce its own %roducts / rather %urchases it &rom #e-mar' here is a strong de%endency on outside su%%liers &rom &oreign lands which leads to a strong de%endency on &uel su%%ly and their %rices leading to &luctuation he size o& the com%any comes in the way o& &aster growth .21A 1 .2A

.21A

.21A

.2A

.3

.21A

.21A

.2A

.3

.21A /166

.21A 71/3

*otal

*)OS MA*'I8
Strengt s )ea+nesses B?. he *usiness A@. here are not a model o& dell which lot o& %roduction units &ocuses on a *uilt to and regional o&&ices in order &ramewor' the west / including where the the .nited States middleman is AA. =or some removed and !Cs are consumers it is an sold directly to the inconvenience that end *uyer Dell !Cs cannot *e B4. Strong %urchased through strength o& sales retail outlets strategy through a AC. It has not *een variety o& mediums

ranging &rom conventional to e; commerce @2. "limination o& the mar' u%s added *y the reselling %arty through the direct sales to end *uyer resulting in lower costs to consumer without cutting down margins &or Dell 8elia*ility that comes out o& a *uilt to order model / reduction o& over; heads related to large inventories and &inished goods. One o& the industry leads in the !ersonal Com%uter mar'et Considera*le num*er o& manu&acturing units across the world Strong *rand value and %ower in 919 as well as 91C Signi&icant margins over costs o& %roduction *ecause o& the direct sales to the end *uyer A highly relationshi% intensive strategy starting &rom the consumer sector and e-tending to the cor%orate and government sectors (olds a large

a*le to %enetrate into several international segments as a leading su%%lier even though the num*er o& locations in the international mar'et are great AD. In the %rinter mar'et it does not %roduce its own %roducts / rather %urchases it &rom #e-mar' here is a strong de%endency on outside su%%liers &rom &oreign lands which leads to a strong de%endency on &uel su%%ly and their %rices leading to &luctuation he size o& the com%any comes in the way o& &aster growth

@3.

A?.

@1.

A4.

@B.

@@.

@A.

@C.

@D.

share in the mar'et o& %ersonal com%uters @?. hrough the *uilt to order model o& %roduction, Dell is a*le to achieve a )uic' turnover as well as decrease the stoc' re)uired in the inventory (igh level o& )uality assurance through e-tensive testing in the %roduction %rocess A wide array o& customers including s%eci&ic mar'et segments such as hos%itals and universities o% ran'ed Server on Intel technology *y the %u*lication echnology 9usiness Strong understanding o& individual customer segment needs Wide array o& methods o& advertising and mar'eting )9O Strategies C?. he develo%ment o& &urther %roduction units as well as retail units in the .nited States EA com*ination o& Wea'ness 3,

@4.

A2.

A3.

A1.

AB.

Opportunities C2. here is a continuing demand &or %ersonal com%uters here is a strong and evolving

S9O Strategies
CC. "-%ansion intensive strategy into the %ersonal com%uter as well as la%to% Mar'et ECom*ination o& Strength 3, Strength

C3.

mar'et &or note*oo's and ta*lets C1. here are strong o%%ortunities o& %artnershi% in the mar'et including one %otentially with Microso&t here is a strong margin o& e-%ansion in consumer electronics Consumer s%ending on technology is relatively untouched com%ared to other %roducts Strong growth in the mar'et o& color %rinters

A, O%%ortunity 3F CD. Strategize such that all &uture develo%ments are in line with the evolving technology and &ocus on a cor%orate social res%onsi*ility agenda 5Strength num*er 3@ and O%%ortunity num*er 37

Wea'ness B and O%%ortunity AF

C4.

CB.

Diversi&ication strategy towards the %rinter mar'et into the color %rinters / including develo%ment o& internal ca%a*ilities EWea'ness @ and O%%ortunity CF

C@.

CA.

* reats D2. here are more mergers and ac)uisitions ha%%ening in the industry / a threat o& strong consolidation trend in the !C industry he in&luence and de%endency on outside su%%liers means increasing oil %rices are cri%%ling the s%ending o& the consumers on !Cs he demand o& commercial

S9* Strategies
D4. !rovide attractive %ricing and discounting %ac'ages on s%eci&ic %roducts to the 91C mar'et EA com*ination o& strength 4 and hreat @F

)9* Strategies ?2. Counter com%etition and increasing mar'et share *y %enetrating into the Asian and "uro%ean mar'et &or leading su%%lier %osition in ma-imum locations EA com*ination o& wea'ness B and threat 3F

D3.

D1.

usage o& !Cs are not increasing at the same %ace DB. Strong com%etition continues to act as a threat he growth o& the mar'et has slowed down Strong &luctuation in %rice Com%uting %ower &ees has reduced he mar'et has widened he &luctuating value and devaluation o& currency continues to ha%%en in the international mar'et

D@.

DA. DC.

DD. D?.

Life cycle of t e firm:s industry

Stage /& Development of t e ;roduct
he &irst stage o& the li&e cycle is mar'ed *y a research intensive and secretive %rocess. he more the innovation in a !C com%any, such as a%%le, the more investment goes into the research %rocess. Code name are usually utilized without naming it till it+s develo%ed com%letely

Stage 0& Announcement of t e ;roduct

his stage is not to *e mi-ed with the actual %roduct introduction stage. he %ur%ose is to *ring the media and *ig guns to an event and announce what will *e coming through in the near &uture. he %roduct does not always reach its &inal sha%e at the time o& announcement o& the %roduct.

Stage 7& Introduction of ;roduct

he introduction o& the %roduct is the stage when the &inal %roduct is ready to *e delivered to the consumers. At the time o& announcement, the su%%ly o& the %roduct is not that high and e-%ensive in order to hit *ig %ro&its. At this %oint o& time, a new %roduct is also started to *e develo%ed which means Stage 3 o& a &uture %roduct starts at the Stage B o& the new %roduct.

Stage <& Maintenance

It is during this stage o& the li&e cycle that the %rice starts decreasing and the su%%ly increases / getting even with the actual demand in the mar'et. he %roducts will *e send to all ma,or sales %oint o& Dell around the world at a lower cost than *e&ore. It is at this stage o& the new %roduct that the &uture %roduct is announced.

Stage 3& 'etirement

Since Dell o%erates in a highly technological environment, changes and advancement are &re)uent which results in a relatively )uic'er retirmenet o& %roducts. his is now re%laced *y the introduction o& the %roduct which incor%orates new technology.

Identification of environmental c anges

;olitical .actors&
he %olitical &actors include legislature, government regulations and other restrictions/%rovisions o& %olitical nature. his directly im%licates the conditions under which Dell has to o%erate. !olitical &actors have caused certain restraints &rom time to time *ecause o& the %olitical insta*ility. Some o& the %olitical &actors include the ones that come as a direct result o& signing o& World rade Organizations. Mar'et access is one such &actor. =or e-am%le, e-as and Malaysia, two o& the to% choices &or Dell in the region are central to ..S ennesse and to Asia !aci&ic res%ectively. Ireland, another hu* o& Dell, is in close %ro-imity to .nited 6ingdom, $ermany and &rance. arri&& &ree access to mar'ets are one o& the *iggest %olitical incentives to Dell. !olitical changes which cause an im%act on mar'et access and their conditions can have conse)uences on %ricing strategy o& Dell as well as su%%ly choices. !olitical incentives such as ta- holidays %rovided *y Malaysia are another such %olitical &actor. #ow cor%orate ta-es, &inancial incentives, land su%%ort and %er ca%ita grants %er em%loyee are other such &actors which contri*ute to the %olitical dynamics o& the o%erating environment &or Dell.

(conomic
he economic situation around the world, in s%eci&ic regions have a direct im%act on two things. A7 he changing economic situation and landsca%e has a direct im%act on the %ricing strategy and %ro&it margin o& Dell and 97 "conomic turmoils such as the one &aced right now *y the world decreases consumer %ower to *uy the Dell %roducts. Currency &luctuation and Changes in Oil %rices are another &actor which causes strong

disru%tion in %ricing models o& Dell. Strong de%endency on &oreign su%%ly means these two &actors *ecome all the more critical.

Social
Demand &or com%uters has a strong de%endency on several social &actors. One o& the most critical o& these social &actors is the level o& education that %revails within a country. (igher education standards lead to strong demand &or the !Cs around the glo*e.

*(CH=OLO>ICAL
echnological changes in environment include the advancement o& com%onents, more e&&icient %arts, internet access, newer ways to mar'et the %roduct and the %ace at which %roducts 'ee% getting smaller and &aster. his change in s%eed and size is central to the changes that are re)uired on a regular *asis *y Dell in order to 'ee% u% with the *usiness environment. Source< 56hari&, 122A7

Strategic group map competition

;roduct ;ositioning Map
H;& (! is the closest com%etition to Dell. With a strong advantage over Dell in the segment o& !rinters, it has an edge on that &ront. On the other hand Dell continues to have an edge in terms o& its com%etitive %rice over (!. he wea'ness, however, remains in the %rinter segment in&ront o& (! 5Schmid and 6el*er, 122A7. I%M& Dell and I9M do not have con&licting target mar'et segments. (owever, I9M seems to have a *etter %enetration into the Asian mar'et as well as *etter access to chea%er wage rates. One o& the most im%ortant com%etitive edge &or I9M is the server mar'et 5Schmid and 6el*er, 122A7. Apple Computers& A%%le is one o& the most innovative &irms in the !C mar'et. heir target mar'et is di&&erent &rom Dell as well. hey are more innovative and sell the %roducts on %remium %rices. #eading edge design and low variety in %roducts are the &eatures o& A%%le. Gote< he %roduct %ositioning is *ased on customization and cost. Customization is seen as the variety in %roduct %ort&olio as well as the customiza*le s%eci&ications within one %roduct.

;roduct ;ositioning Map

"-%ensive

A%%le

Customiza*le $eneric

(!

Dell

I9M Ine-%ensive

'ecommendations
'ecommendations for strategy implementation
Dell+s strategy has *een &ocused on *uilding com%uters that can *e ordered *y consumers through a strong internal ca%a*ility o& manu&acturing and )uic' inventory turnarounds. his *uild to order strategy has *een the di&&erentiating &actor &or Dell &or the %ast &ew decades. he removal o& the middle man gives it high margin in direct sales as well as %rovides low costs to its consumers. One o& the strong strategic advantages &or Dell has *een its a*ility to ada%t to changes. As an em%loyer Dell has &ocused on a strong relationshi% with em%loyees, &ocusing on their motivation, well *eing, reward strategy and em%owerment strategy. Its strategic su%%ly chain management, data integration with su%%liers, relationshi% intensive a%%roach and integrating %hysical store sales with online sales has made sure Dell continues to grow at an e-ce%tional rate. he &ollowing are recommended as strategic line o& action &or Dell 3. An involvement in CS8 activities including a $reen Cam%aign &or collection o& old !Cs/electronic e)ui%ment &or recycling/dis%osition in an environmental

&riendly way. his will lead to *etter image in the society as well as sustaina*le develo%ment and cost e&&iciency in the long term 1. A series o& internal mar'eting e&&orts to maintain a highly innovative culture within the organization &or a re en&orcement o& its em%loyer values &or high %er&ormance management and em%loyee %artici%ation. B. 0enture into 8HD %artnershi% with an esta*lished com%any sharing intellectual resources and the hardware in&rastructure o& Del &or develo%ment o& technology savvy %roducts &or &uture. @. 9uilding more manu&acturing %lants around the world and s%eci&ically in the .S. $lo*al e-%ansion should *e met with region s%eci&ic ca%acity *uilding as well as to reduce su%%ly chain costs/com%lications and de%endency on e-ternal &actor A. Internal ca%acity *uilding &or the develo%ment o& %rinter %roducts in order to cut down its costs, increase )uality and increase mar'et share in com%etition to (!.

Conclusion
he industry o& %ersonal com%uters, la%to%s and related hardware is one which evolves continuously. he result o& glo*alization, %olitical incentives and technological advances can *e seen on a regular *asis. his means that a reassessment o& strategy &or all the %layers in the industry is im%ortant in order to 'ee% the res%ective com%etitive advantage going. Dell+s structure allows &or e&&iciency, cost o%timization, customer relationshi% intensive strategies and o%timum su%%ly chain. his re%ort assessed the strategic direction that Dell has *een ta'ing on the *asis o& its e-ternal environment and internal ca%a*ilities/limitations. hrough WOS, !"S , %ositioning ma%s and internal/e-ternal 'ey &actor evaluation, the re%ort came u% with a &ive %oint recommendation &ocusing on research and develo%ment, %roduction %lants, internal ca%a*ility develo%ment, high %er&ormance management and cor%orate social res%onsi*ility.

'eferences
; Dell, M. 534447. Direct =rom Dell< Chairman and Chie& "-ecutive O&&icer, Dell Com%uter Cor%oration. Collins ; 6hari&, O. 5122A7. IDell, ime &or a Gew ModelJK 9usinessWee'

; Schmid, G. and 6el*er, A. 5122A7. he Dell Com%any / A Strategic Analysis. Management Seminar. (ochschule ; www.dell.com

; ;

www.h%.com www.i*m.com