Dell was founded in 1984 by Michael Dell on a simple concept: by selling computer systems directly to customers. Its corporate headquarters are located in Round Rock, Texas, and it conduct operations worldwide through subsidiaries. The company’s core business strategy is built around its direct customer model and highly efficient manufacturing and logistics. Nowadays they are expanding that core strategy by adding new distribution channels to reach even more commercial customers and individual consumers not only in the USA but around the world. Recently, company also has begun to pursue a targeted acquisition strategy designed to augment select areas of its business with more products, services, and technology. Dell’s goal today is to provide the best possible customer experience by offering superior value; high-quality, relevant technology; customized systems and services; superior service and support; and differentiated products and services that are easy to buy and use [1]. But what pursued Dell to change its strategy and to reevaluate its direct model?
Table of Contents
- Introduction
- Strategy Analysis
- Industry Analysis
- Competitor Analysis
- Environmental Analysis
- SWOT Analysis
- Arenas
- Product Markets
- Distribution Channels
- Market Segments
- Geographic Scope
- Vehicles
- Internal Development
- Strategic Alliances
- Joint Ventures
- Acquisitions
- Differentiators
- Image
- Customization
- Pricing
- Speed to Market
- Special Product Features
- Convenience
- Styling/Design
- Product Reliability
- Service
- Value (Combination of Above at the Best Price)
- Staging
- Economic Logic
- Assessment of Outcomes
Objectives and Key Themes
This research project analyzes Dell's business strategy, examining its evolution and effectiveness in response to changing market conditions. The analysis explores Dell's shift from a direct-sales model to a more diversified approach, including retail partnerships and acquisitions. The study also evaluates the company's performance against key competitors such as HP and Apple.
- Evolution of Dell's business strategy and its core components.
- Analysis of Dell's competitive landscape and market positioning.
- Impact of changing market trends on Dell's performance.
- Evaluation of Dell's diversification efforts into new product categories and geographic markets.
- Assessment of Dell's customer service and its role in overall strategy.
Chapter Summaries
The Introduction provides background on Dell and its initial business model. Strategy Analysis examines industry trends, competitor strategies, and the external environment impacting Dell. The Arenas section details Dell's product markets, distribution channels, market segments, and geographic scope. Vehicles describes Dell's methods for achieving its strategic goals, including internal development, strategic alliances, joint ventures, and acquisitions. The Differentiators section analyzes Dell's competitive advantages, focusing on aspects such as brand image, product customization, pricing, speed to market, and customer service.
The Staging chapter discusses Dell's strategic choices regarding market timing and segmentation. Economic Logic outlines the underlying economic principles driving Dell's strategy. Assessment of Outcomes presents an analysis of Dell's performance and market share against its competitors.
Keywords
Dell, business strategy, direct sales, mass customization, industry analysis, competitor analysis, SWOT analysis, product diversification, market segmentation, geographic expansion, strategic alliances, acquisitions, customer service, competitive advantage, market share, revenue growth, economic logic, emerging markets, retail partnerships, pricing strategy, innovation, sustainability.
- Quote paper
- Alina Ignatiuk (Author), 2008, Analysis of Dell’s Business Strategy , Munich, GRIN Verlag, https://www.grin.com/document/124459