Miss
I. INTRODUCTION No other technology company listens
to customers, collaborates with partners,
adds its own significant layer of innovation
and delivers relevant technology more
efficiently and effectively than Dell.
These words from Michael Dell point out more than anything else how the Dell Company managed to advance to the worldwide number one in the computer industry. From a little company founded by an undergraduate student at the University of Texas, Dell Inc., headquartered in Round Rock, Texas, has developed into a huge corporation with more than 55,200 employees today and an annual turnover of nearly $50 billion.
This paper focus mainly to analyze how the Dell company performs in the competitive environment of the computer industry, which factors are essential for success and how Dell successfully takes advantage of its business structure.
II. BODY
1. Dell's competitive/business strategy Dell's business strategy is a successful cost leadership strategy. The company's formula for success has been based upon its unique customization, delivery, and cost proposition. In reaction to faltering performance and the need to pursue new growth opportunities, a dual-strategic approach is required to confront rapidly changing market conditions. First, Dell must integrate its cost leadership skills with differentiated product features and related services to create value for its customers and achieve the benefits of an integrated cost leadership/differentiation strategy. Additionally, becoming a diversified IT company opens up opportunities in related businesses, where similar products, buying processes, target customers, or other operationally related activities can produce synergies. This business-level and corporate-level strategy combination offers Dell a method of dealing with the company's competitive realities. Both strategies are discussed below.
a) Integrated cost leadership/differentiation strategy: The objective of using this
These words from Michael Dell point out more than anything else how the Dell Company managed to advance to the worldwide number one in the computer industry. From a little company founded by an undergraduate student at the University of Texas, Dell Inc., headquartered in Round Rock, Texas, has developed into a huge corporation with more than 55,200 employees today and an annual turnover of nearly $50 billion.
This paper focus mainly to analyze how the Dell company performs in the competitive environment of the computer industry, which factors are essential for success and how Dell successfully takes advantage of its business structure.
II. BODY
1. Dell's competitive/business strategy Dell's business strategy is a successful cost leadership strategy. The company's formula for success has been based upon its unique customization, delivery, and cost proposition. In reaction to faltering performance and the need to pursue new growth opportunities, a dual-strategic approach is required to confront rapidly changing market conditions. First, Dell must integrate its cost leadership skills with differentiated product features and related services to create value for its customers and achieve the benefits of an integrated cost leadership/differentiation strategy. Additionally, becoming a diversified IT company opens up opportunities in related businesses, where similar products, buying processes, target customers, or other operationally related activities can produce synergies. This business-level and corporate-level strategy combination offers Dell a method of dealing with the company's competitive realities. Both strategies are discussed below.
a) Integrated cost leadership/differentiation strategy: The objective of using this