Premium Essay

Dell Strategic Management

In: Business and Management

Submitted By workingcap1234
Words 863
Pages 4
Harvard Business School: Matching Dell
Assignment 1
4701U - 001
Word Count: 738

Submitted By: David Pascual Shees Mazhar and Ryan Lerma

Submitted To: Professor Jelavic SID: 100 369 901 100 369 510 100 344 842

Date: November 16, 2011
Question 1 444

Bargaining Power of Buyers (High and Rising) 80
Buyers have relatively high power of bargaining since Wintel standards create easy switching and low brand loyalty. The category of retailers and resellers could easily backward integrate and sell their own manufactured PC’s. Appealing to end users meant concern for price sensitivity and easy switching. The category of major companies and government buying power is very high because a bidding war is created where different PC firms fight to provide the best service, product and support at the lowest prices.
Supplier Power (Very high and low) 54
Generally, there was only one category of suppliers to the PC industry which was Microsoft, while Intel provided the operating system and the microprocessor, both at a near monopoly. At the time, no other company had the manufacturing or distribution capability of either provider. In the category of peripherals and commodity inputs, these were cheaply bought nationally and internationally.
Threat of New Entry (Moderately High) 70
New entry is moderately viable since the entry costs are practical to an established company. With start-up costs of approximately one million dollars, companies with reputable capabilities and resources can enter the PC business quite easily. Another category would consist of the unbranded “White Box” manufacturers where systems could be easily assembled by end users with the ease of

Similar Documents

Premium Essay

Dell Corporation

... Course Title Professor’s Name 14 March 2008 Dell Corporation Introduction Dell Corporation is one of the leading computer companies in the world operating on the global scale since 1990s. Dell relies on innovative technologies and new solutions which help the company to reach global consumers and market high quality products in different categories. International expansion helps Dell to obtain strong market position and sustain strong growth. A current strategy of Dell includes the determination of the basic long-term goals concerns the conceptualization of coherent and attainable strategic objectives. Key Components of the Business Environment of Dell High-technology market is marked by increasing capital markets activity over the past 5 years. It is estimated that average annual returns are anticipated to exceed 13 percent over the next 10 years, with investment alternatives performing at single digit growth rates (approximately 7 percent to 9 percent). This approach is based on Dell superior understanding of the problem solved by the product, the benefits it offers and issues it addresses. Dell is a leader in IT industry with S$ 57.095 billion revenue a year. Customers and technology are the primary driving factors in this arena (Dell Corporation Home Page 2008). Customers want products that satisfy their needs or improve their productivity. In 2 order to respond to external environment, Dell looks for ways to deliver these benefits at a lower cost...

Words: 4059 - Pages: 17

Premium Essay

Dell Inc

...Dell Corporation, Strategic Case Analysis prepared by Ijaz Qureshi and John Mufich, Argosy University Business School, San Francisco, California, USA. Case Analysis: Dell Corporation By: Ijaz Qureshi & John Muffich For: Dr. Admassu Bezabah B7405 Business Policy Seminar Summer II: 2004 © Ijaz and John, Argosy Business School, Argosy University, San Francisco, California, USA 1 Dell Corporation, Strategic Case Analysis prepared by Ijaz Qureshi and John Mufich, Argosy University Business School, San Francisco, California, USA. Executive Summary: Dell computer was founded by Michael Dell at age of twenty one in his dorm at the University of Texas, Austin. Dell’s strategy is to build computer so that it can be order by the consumers. It’s 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. (IBM is the leader). Dell’s ability to adapt to changing circumstances is its great strength. One week after the September 11th 2001 attack, Dell reported selling 24,000 servers and desktops. Dell established mobile technology park in Washington D.C. and New York by converting...

Words: 1903 - Pages: 8

Premium Essay

Dell-Strategic Mgmt

...Dell Corporation, Strategic Case Analysis prepared by Ijaz Qureshi and John Mufich, Argosy University Business School, San Francisco, California, USA. Case Analysis: Dell Corporation By: Ijaz Qureshi & John Muffich For: Dr. Admassu Bezabah B7405 Business Policy Seminar Summer II: 2004 © Ijaz and John, Argosy Business School, Argosy University, San Francisco, California, USA 1 Dell Corporation, Strategic Case Analysis prepared by Ijaz Qureshi and John Mufich, Argosy University Business School, San Francisco, California, USA. Executive Summary: Dell computer was founded by Michael Dell at age of twenty one in his dorm at the University of Texas, Austin. Dell’s strategy is to build computer so that it can be order by the consumers. It’s 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. (IBM is the leader). Dell’s ability to adapt to changing circumstances is its great strength. One week after the September 11th 2001 attack, Dell reported selling 24,000 servers and desktops. Dell established mobile technology park in Washington D.C. and New York by converting...

Words: 1930 - Pages: 8

Premium Essay

Matching Dell Case

...reviewer(s), etc., please visit www.BaselineScience.com B a s e l i n e S c i e n c e , I n c . • w w w. b a s e l i n e s c i e n c e . c o m Matching Dell: A Strategic Case Analysis Dan Demers GS 604, Thursday 5:00 – 7:20 Matching Dell: Dell’s Key Strategic Issues At the close of the case, Dell is presented with two key strategic issues. The first strategic issue facing Dell is the movement of rivals seeking to mimic Dell’s direct sales model, while the second strategic issue is the declining trend in pricing in the Personal Computer Industry and the effects this trend will have on the operations and profitability of both Dell and Dell’s Rivals. In this case analysis, I recommend that Dell answer these issues by assuming a Cost Leadership in a Broad Market strategy to win the price war on cost, establish strategic relationships with system integrators and resellers to counter the product diversification threat of multi-offering Rivals, and strengthen its brand presence internationally to enable continued market growth. Personal Computer Industry: Industry Structure Analysis In this analysis, I define the Personal Computer Industry as that which is comprised of computer manufacturers responsible for the assembly of personal computers, either in entirety or with the assistance of contractors or channel partners. Dell is included in this definition, as are Dell’s Rivals highlighted in the case. In applying Michael Porter’s Five Forces Modeli, it is clear that the Personal...

Words: 2962 - Pages: 12

Premium Essay

Strategic Management

...http://www.scribd.com/doc/51862116/Dell-Strategic-Management 1. Choose any organisation of your choice. Use any of the strategic change models discussed at AC1.1 to prepare a change plan for your chosen organization The strategic change model is different thing to different people. There are many models which are applicable in the strategic change model as well. The strategy models frame work consists of learning process, living system, strengths, alignment process, community development, competition, cognition, design chan, postioning, power, process of improvement, and value creation. Dell Company provide strategic management to translta the Dell provides a classic example of how the principles of strategic managementhave been used to translate an innovative vision into a successful and sustainableenterprise. Their vision statement basically tells the way they do their business.They want to be successful in the digital world for this they rely on latesttechnology. Dell provides quality products to cater the needs of the people. Inintend to build good relationship with their customers and suppliers Analysis of the internal environment:After setting the mission and objectives the next step is to analyses the internalenvironment.E.g.: Dell Corporation needs more qualified manpower, machines adopted byDell Corporation should be highly Resultant Analyze of external environment:The management conducts the analyses of the external environment.E.g.: Dell Corporation manufactures product...

Words: 1339 - Pages: 6

Premium Essay

Essentials

...MBA Essentials Information Technology for Strategic, Competitive Advantage Virginia Franke Kleist, Ph.D. Assistant Professor Division of MIS/Management Welcome to the Technology Part of the Program • How are you using information technology (IT) today in your firms and businesses? • How successful has this been for your firm? • Do you have problems that are still unresolved with Information Technology? • Can IT give competitive advantage, anyway? • How can one identify which technologies will best give strategic advantage? MBA Essentials Session X Information Resources Management 2 Contact Information • • • • • • Virginia Franke Kleist, Ph.D. Virginia.kleist@mail.wvu.edu www.be.wvu.edu/divmim/mgmt/kleist 304-293-7939 I welcome your comments and contacts! Several drawings are adapted from Laudon and Laudon, (2005), Management Information Systems: Managing the Digital Firm, New Jersey: Prentice Hall (8th ed.). • Some material adapted from Burgelman, Christensen and Wheelwright, (2004), Strategic Management of Technology and Innovation, Boston: McGraw-Hill Irwin (4th ed.). MBA Essentials Session X Information Resources Management 3 MBA Essentials Session X Information Resources Management 4 MBA Essentials Session X Information Resources Management 5 What will we learn? • Strategic advantage from information technology • Latest information technologies • How do you successfully select, implement...

Words: 1553 - Pages: 7

Premium Essay

Strategic Management Process Paper

...Strategic Management Process Paper Kenneth Worley MGT/498 February 19, 2014 Patty Murphy Strategic Management Process Paper Having a set of rules, is not the only way to approach management. There is a process to follow. There is a philosophical/strategic thought to it. Management of a business must implement this process. Best way to process it is when everyone in upper management understands the strategy and goal of the business. Goal-setting- is one of the process patterns to illuminate the vision of a business. Also identifying some facets like short, long term objectives and knowing how to accomplish those objectives. Customizing the tasks to the staff for them succeed toward the goals set. Making sure the goals are realistic and detailed, and relate to the vision verbally and written to staff and shareholders of the business. Analysis is very important process, accomplishing your vision is for you to gathering all the relevant data and information. Analyzing what the business need on a sustainable entity, identifying initiatives and strategic direction of your vision and the growth of business. Analyzing external and internal problems which may affect the goals and objectives, which plays to the weakness and strengths of the businesses. Strategy Formulation- is after the completion of the information analysis. Identifying areas might need external resources and identify resources currently the business has to accomplish goals and objectives. To start formulating...

Words: 508 - Pages: 3

Premium Essay

Dell's

...1.0 Executive Summary Dell is considered an industry leader due to their large range of high quality products. Dell PowerEdge servers, Power Vault and Dell/EMC storage systems and PowerConnect switches are superior buildings blocks for enterprise computing. Dell also offers printers, projectors, tablets and phone, HDTVs and home theatre, Axim handhelds and other complementary products. Dell’s support all this products with a broad range of services designed to help customers simplify complex computing. In short, Dell is focused on delivering maximum performance with standards-based solutions while ensuring the right mix of cost effective solutions with value at every level. In that case, Dell’s is not just interested in low prices, but also in high-performance and solid reliability. Today, Dell lost its market position to HP and hopefully realizing that efficiencies are not the means to an end; competition is global and fierce; customers are constantly evolving and business can’t stay still. In this case analysis I will highlights Dell’s SWOTs analysis. This analysis is to identify firm’s strengths and weaknesses and diagnose organization’s threats and opportunities. Moreover I will underline the Dell’ unique and strong competencies as well as others marketing strategy. 2.0 Introduction Dell Corporation is a 27 year-old entrepreneur founded by Michael Dell, the computer industry’s longest-serving chief executive. Dell’s sales philosophy is very simple, that...

Words: 2548 - Pages: 11

Premium Essay

Dell Strategy

...Dell Strategic Management Assignment/Case Study Solution Dell Strategic Management Assignment/Case Study. It reviews the organizational structure, vision, mission, SWOT, PESTEL Analysis, Strategic Group Map Competition and Product Positioning Map of Dell. This is a sample paper. If you like to order your own paper, please Click Here Introduction This report undergoes a strategic management overview of Dell, one of the leading PC vendors of the world with a unique operations model focusing on built to order and direct to consumer frameworks. The report begins with a comprehensive overview of the company’s operations, its hierarchy, location and principle of logistics. An understanding of the vision, mission and objectives allows for the strategic analysis to be put into context and perspective. Our first strategic analysis tool is the SWOT analysis followed by an internal and external factor analysis. This is accompanied by a TWOS matrix allowing the report to pin point specific strategies which may help the organization cash on its strength and opportunities to offset threats. An overview of the life cycle of the industry is followed by a PEST analysis. Understanding the political factors is critical and along with the location principles explained in the first section – allows us to pin point some strategic direction for the company. Similarly the economic, social and technological factors are discussed for the industry and the implications for Dell on a strategic level. A competitive...

Words: 4889 - Pages: 20

Premium Essay

Operations Management

...etc., please visit www.BaselineScience.com B a s e l i n e S c i e n c e , I n c . • w w w. b a s e l i n e s c i e n c e . c o m Matching Dell: A Strategic Case Analysis Dan Demers GS 604, Thursday 5:00 – 7:20 Matching Dell : D ell’s Key Strategic Issue s At the close of the case, Dell is presented with two key strategic issues. The first strategic issue facing Dell is the movement of rivals seeking to mimic Dell’s direct sales model, while the second strategic issue is the declining trend in pricing in the Personal Computer Industry and the effects this trend will have on the operations and profitability of both Dell and Dell’s Rivals. In this case analysis, I recommend that Dell answer these issues by assuming a Cost Leadership in a Broad Market strategy to win the price war on cost, establish strategic relationships with system integrators and resellers to counter the product diversification threat of multi-offering Rivals, and strengthen its brand presence internationally to enable continued market growth. Personal Computer Industry : Industry Structure Analysis In this analysis, I define the Personal Computer Industry as that which is comprised of computer manufacturers responsible for the assembly of personal computers, either in entirety or with the assistance of contractors or channel partners. Dell is included in this definition, as are Dell’s Rivals highlighted in the case. In applying Michael Porter’s Five Forces Modeli, it is clear that ...

Words: 2951 - Pages: 12

Premium Essay

How the Effective Management of Operations Contrib

...Operations Management is the planning, scheduling and control management decisions can range from the long-term, the fundamental decision of what products or services will be provided and transformation process will look like into finished goods and input services.operations, conversion activities the more immediate problems, such as determining the best way to fill existing customers request.through, sound business management, organizations make the best use of resources, and operating functions at the same time, hoping to provide the best value for their customers organization part of which is responsible for the activity.Every organizations operating functions, because each organization to produce certain types of services and products, however, not all types of organizations will be called operation functions, through the name. Competition from a rival company does not prevent the development of DELL Why Dell company can created Dell superior competitive advantage in a very short time? Implementation of effective management strategies is the company to success and the key to improve competitiveness.Develop a effective strategy, successful companies have gained faster development and achieved a better competitive advantage and market share. 1:Corporate to gain a competitive advantage, influence the development and implementation of corporate strategic management objectives causal analysis. Competition in the market, if the same way with the competitors management clearly...

Words: 899 - Pages: 4

Premium Essay

Porter's , Model

...Case study on | Strategic Analysis | Of Dell Inc. | | mujeeb | [Pick the date] | | Introduction: The purpose of this report is to analyze the strategic position of Dell Inc. Headquarter in Round Rock, Texas; Dell computer was founded in 1984 by Michael Dell who was then an undergraduate student at the University of Texas. From very inception the company is providing superior value to its target market by providing latest technology at competitive prices around the world. Dell is cited as the largest player of the personal computer market. The company follows unique selling policy that is known as Dell Model—selling computers and other equipments directly to customer and build-to-order strategy thereby eliminating the intermediary margins and inventory costs. The mission statement of Dell has been divided into three parts customer satisfaction that states “We are an established company striving to satisfy customers by meeting their demands of quality, responsiveness, and competitive pricing. Each customer is #1” , team satisfaction that states, “Management and employees are committed to cooperating as a team for the purpose of profitability and gratification of a job well done” and community satisfaction “We will provide jobs in a clean, safe, environmentally sound atmosphere and be an active participant in community affairs” (Dell, 2010). 1. External Analysis: The primary industry of Dell is personal computer and computer equipments that are evolving...

Words: 2792 - Pages: 12

Premium Essay

Strategic Management

...EXECUTIVE SUMMARY Dell Inc. is an American multinational technology company based in Texas. Dell managed to enter Singapore market through foreign direct investment and relied on the sales of laptops, printers, and many more. In Singapore PC and laptop are used to assist daily activities supported with abundant Internet access, this makes Singapore a good market for computer and peripheral industry. There are a total of 6 parts in this report. In the beginning of this report, a brief history and background of Dell will be shown. Then, in the second part of this report, advanced technology is shown as one of many vital keys in computer and peripheral industry along with lesser keys like economic, political, and demographic conditions. For the third part, an industry analysis using Porter 5 forces theory will analyze how those forces affect computer and peripheral industry generally. The second and the third part will focus on the industry as a whole. For the fourth and fifth part of this report, it will highlight Dell. The fourth part will show Dell’s strategic capabilities and how they help and enable Dell to survive and competitive in the industry. Meanwhile, the fifth part of this report will talk about Dell’s business strategy and how it transforms Dell to be a better company. The last part of this report will show the evaluation of Dell’s strategy evaluation that determines the sustainability of Dell. TABLE OF CONTENT 1. BACKGROUND AND HISTORY ...

Words: 4021 - Pages: 17

Premium Essay

Strategic Plan

...Our assignment for this week is to prepare a strategic plan to grow an organization over the next three years. In this plan we are to include the following: 1) a description of the organization’s history, products, and their major competitors, 2) explain the current situation of the organization in the market, 3) conduct a SWOT analysis to determine what areas offer opportunities for change, 4) select three areas from the SWOT analysis and explain why the areas chosen are essential to the strategic plan, and 5) explain the method to measure the success of the strategic plan. The company that I chose to create a strategic plan for is going to be for Dell. With all this said let’s get started with Dell’s company overview. Dell came about in 1984, which is about 29 years ago. Their goal since they started was to make customized computers and have them delivered directly to the customer’s door. This company designs, manufactures, produces, promotes, sells, customizes, and presents amazing services to all over the world. They also offer its business making software, smart phones, peripherals, servers, mobile workstations, networking server optimizations, and data storage capabilities. Dell’s company employs more than 98,000 employees. Dell started with $1,000 in 1984 and their stock went up 13,5000% in the last 25 years (Dell, (2014). Dell reached their goal in 2011 by merging two brands to promote a better line of products which is where Alienware Systems came in. This...

Words: 2754 - Pages: 12

Premium Essay

Dell

...Question 3: Does Dells expansion into other IT Products and services make good strategic sense? Why or Why not????? Dells decision to expand in to other IT Products and services made good sense as customer can be brand loyal and prefer to have matching components for their PCs. Dell has a quality reputation which customers know and trust. Dells expansion into data storage hardware, switches, handheld PCs, Printers, and Printer Cartridges and software products represented an effort to diversify the company’s product base and to use its competitive capabilities in PC and servers to pursue revenue growth opportunities. The expansion into different products and services complemented sales of PCs and Servers. In 1995 Dell had a 2% market share in the server market, increasing to 30% in 2008. Dells idea to sell Data Routing switches proved to be a clever strategic move as they were able to price products 2 and a half times less than the market leader at the time Cisco. This resulted in Dell shipping 1.8 million switch ports in the period of a year. Senior Dell executives saw external storage devices as a growth opportunity because the company’s corporate and institutional customers were making increasing use of high speed data storage and retrieval devices. Competition in the IT industry can be a challenge. So for any company to survive within that industry, it has to have the ability to harness the basics of its core competencies to the very maximum. This is an inventive design...

Words: 3661 - Pages: 15