Dell Inc. Case
1.0 Case Summary
Dell Inc. was founded by Michael Dell at age of 19 in his dormitory at the University of Texas, Austin. Dell’s strategy is to build computer so that it can be ordered by the customers. Its build to order strategy has made Dell the most successful company in the information technology field. Dell sells its machines and other equipments directly to customers so it has eliminated the middleman. Dell has high margin because of direct sale strategy and customers get excellent state of the art machines at low cost compare to Dell’s competitors. Michael Dell’s visionary leadership has made Dell the second most successful PC maker in the industry.
Dell has very user friendly web site. Half of Dell’s sales, half of technical support and three quarter of order status take place online. The supply chain and data integration with suppliers has made Dell one of the most efficient computer manufacturers. The continuous advancement in technology and innovative approach to manufacturing and assembly keeps Dell the low price leader in the PC industry.
However, with the development of computer industry, Dell is facing more and more competitors with different business strategies. Dell had tried to change its distribution strategy to sell through retail stores and failed. Dell had also tried to broaden its product line to increase its revenues. After the recession, Dell is shifting to a cost reduction and competitive pricing model. But the management of Dell is still looking for best strategy to position the company in order to survive and improve the business in the future.
2.0 SWOT Analysis
2.1 SWOT Analysis
Strengths
Dells Direct Model approach of enables the company to offer direct relationships with customers such as corporate and institutional