Evaluation of Michael Dell, Dell strategy, Expansion and SWOT.
1. What is your evaluation of Michael Dell as CEO? How well has he performed the task of strategic management discussed in Chapter 1?
Strategic Management Tasks
- Analyzing External Environment
- Analyzing Company resources and Position
- Knowing Which strategy to Apply
- Identify Opportunities
- Select Right Business Model
M. Dell started his business when the market for the computers was still growing very fast thou it already was dominated by big players with the strong brand image such as IBM. Even thou he did not have the resources to compete with such strong competition he had the vision that some day his company may be the market leader.
His success was based on finding the opportunity to produce the computers at lower cost then IBM and sell directly to customers by omitting the retailers. His company was growing fast, although not without the problems. The case states that during the early nineties the company "hampered by growing pains- specifically, a lack of money, people and resources"(Thompson 216). Dell had the vision, knew market well, and had a good business model but he had the problem with controlling the company growth and getting more production capacity. Finally, these problems were overcome and Dell Corporation became a public company. One more thing that is worth to notice is that even thou Dell was so successful he also made some mistakes, the example is provided by textbook. In 1990, Dell started selling through the retailers and abandoned the initial strategy of selling directly to customers and it went four years when he finally realized that it was a mistake.
In 1996, Dell started to sell his computers to individuals over the Internet. He was able to see the opportunity for growing the market of tech savvy customers that did not need so much customer support.
He not only was selling the computers at low cost but he also customerized them. The mass customerization in computers was ingenious idea but combined with the low cost
Strategic Management Tasks
- Analyzing External Environment
- Analyzing Company resources and Position
- Knowing Which strategy to Apply
- Identify Opportunities
- Select Right Business Model
M. Dell started his business when the market for the computers was still growing very fast thou it already was dominated by big players with the strong brand image such as IBM. Even thou he did not have the resources to compete with such strong competition he had the vision that some day his company may be the market leader.
His success was based on finding the opportunity to produce the computers at lower cost then IBM and sell directly to customers by omitting the retailers. His company was growing fast, although not without the problems. The case states that during the early nineties the company "hampered by growing pains- specifically, a lack of money, people and resources"(Thompson 216). Dell had the vision, knew market well, and had a good business model but he had the problem with controlling the company growth and getting more production capacity. Finally, these problems were overcome and Dell Corporation became a public company. One more thing that is worth to notice is that even thou Dell was so successful he also made some mistakes, the example is provided by textbook. In 1990, Dell started selling through the retailers and abandoned the initial strategy of selling directly to customers and it went four years when he finally realized that it was a mistake.
In 1996, Dell started to sell his computers to individuals over the Internet. He was able to see the opportunity for growing the market of tech savvy customers that did not need so much customer support.
He not only was selling the computers at low cost but he also customerized them. The mass customerization in computers was ingenious idea but combined with the low cost
Bibliography: Lee, Louise. "It 's Dell versus Dell Way". Business Week . February 23 2006. Thompson - Strickland. "Strategic Management". Primis Online.Mc Graw-Hill2006. http://news.com.com/Gateway+and+HP+settle+patent+dispute/2100-1014_3-6044816.html?type=pt∂=inv&tag=feed&subj=news http://news.com.com/Hardware+market+awaits+HP,+Dell+quarterly+earnings/2100-1003_3-6039280.html http://www.technewsworld.com/story/35824.html