1. What was Dell’s original strategy?
Dell’s strategy is to sell directly to customer and build computer thru customer’s own specifications, which they made a dominant share on the market on made-to-order PC’s. This strategy also encompasses customer service which they entailed an ordering system through phone. These steps made by Dell are to make the customer comfortable.
2. Why is Dell losing the competitive edge of its original strategy?
As technology arises, a variety of PC configurations also arises in the market. This allows customers to choose in an infinite number of configurations which makes Dell lose its advantage. Another thing that made Dell lose its competitive edge is that the competitors adopted their idea having the customers to choose in a wide range of configurations and preferred brand.
3. What is Dell’s new strategy? How does the new strategy use IT? Has the new strategy replaced or supported the original strategy?
Dell’s new strategy is to use the web as way of commerce. This strategy supports Dell’s original strategy to make customer comfortable. A better relationship with Dell’s customers were cultivated through E style since inquiries and other customers questions can be answered within a minutes. Also, this gives Dell a more comfortable way of ordering system, cut cost in Phone calls.
4. Competitors ( such as IBM, Compaq) have adopted Dell’s Web initiative. What strategies would you suggest that could sustain the company’s competitive advantage?
A high switching cost can be applied by Dell; having the ordered PC’s will be given a longer time of warranty periods.
Recruiting on the Web
1. Obviously, hiring the right people is essential to a company’s smooth operation. And hiring the wrong person can be detrimental in many ways. One is the enormous cost involved in wasted time and money. Consider the following: what costs are involved when a company realizes that an