Dell Strength and Weakness
Based on the external environment and the historical perspective of Dell, Michael Dell needs to realize that his nearly 20 year-old business model needs a dramatic change. He needs to get the product in customers hands (before point-of-sale), focus on quality customer support/service, and use customer indicators as a sign of what areas need improvement/enhancement within the company. Additionally, limited options based on narrow-minded perceptions (only using Intel chips) not only cost Dell market share, it also cost them on the bottom line (Operations). Not listening to the needs and wants of loyal consumers can result in a loss of market share, which is what Dell has experienced.
REQUIRED ACTIONS
In my opinion, Dell will only regain its growth percentage when it ceases focusing on measuring profitability via delivery time ratios and number of unit sold and begins focusing on what foreign markets expect, based on their cultural differences. It seems Dell did little research before opening several foreign manufacturing facilities and attempting to develop international sales relations. As a result, they failed to alter their U.S. business model to meet the needs of other (foreign) consumers. Also, through this ignorance they also sacrificed the brand name and initial marketing push/hype.
SUPPORTING INTERNAL RESOURCES
Strategic groups should be used as internal resources to analyze the industry and use competitor analyses to observe whether the business mission is still being served, or perhaps requires modification to meet the changed environmental factors. The firm could use its internet associations to present the customer with a survey for feedback about the product offerings – what they would like to see added to the product line, or perhaps what service could be added or improved. Seeking the direct opinion of the loyal customer base is readily at hand when they are contacting customer service/support for assistance with a problem. Not
REQUIRED ACTIONS
In my opinion, Dell will only regain its growth percentage when it ceases focusing on measuring profitability via delivery time ratios and number of unit sold and begins focusing on what foreign markets expect, based on their cultural differences. It seems Dell did little research before opening several foreign manufacturing facilities and attempting to develop international sales relations. As a result, they failed to alter their U.S. business model to meet the needs of other (foreign) consumers. Also, through this ignorance they also sacrificed the brand name and initial marketing push/hype.
SUPPORTING INTERNAL RESOURCES
Strategic groups should be used as internal resources to analyze the industry and use competitor analyses to observe whether the business mission is still being served, or perhaps requires modification to meet the changed environmental factors. The firm could use its internet associations to present the customer with a survey for feedback about the product offerings – what they would like to see added to the product line, or perhaps what service could be added or improved. Seeking the direct opinion of the loyal customer base is readily at hand when they are contacting customer service/support for assistance with a problem. Not
References: Dell.com. (2008). Frequently Asked Questions. Retrieved April 19, 2008, from http://www.dell.com/content/topics/global.aspx/corp/investor/en/faqs?c=us&l=en&s=corp#faq8 Hitt, M; Ireland, R; & Hoskisson, R. (2007). Strategic Management: Competitiveness and Globalization. Mason, OH: South-Western Cengage Learning.