Define the management decision problem facing Dell as it seeks to maintain and build on its leadership position in the personal computers market Answer 1:
Management decision problem is about action-oriented issue of what the decision maker needs to do. In different environment and different problems, Dell continued to implement different strategies to main and build its leadership position in the computer market.
(a) Saturation of PC in American:
In the Dell case, Sales inside the United States were about 53% of consolidated net revenue in fiscal 2008. Dell has to look for direction or solutions to supplant sales in the PC-satured U.S. market.
(b) Keen Competition:
Apart from attempting to erect proprietary systems of what HP and IBM often did, Dell used low-cost and directly sales model.
(c) Partnership internationally
Dell developed and created a PartnerDirect – a global program that can bring existing partner initiatives user one umbrella.
(d) Retail Strategy:
In order to meet customers’ needs and demands, Dell started offering select products in retail stories among several countries not only in Americas but also in Europe and Asia during the fiscal 2008. This allowed Dell to extend the business model to reach customers.
(e) Diversity of Products:
Dell has taken the marketing opportunity to manufacture flat-screen TVs after all the brand equity Dell has built up, it continued to use newest technology to diversify even further.
(f) Development of New Product Line:
When DELL acknowledged printing products produced about 70% of HP’s operating profit and is the biggest margins, DELL started to create the new
printing product line to implement penetration. Before penetrating the market, Dell conducted a survey to investigate and realize the customer behavior, correlation on any of identified usage factors and the underlying demographic aspects of the classification of the customers....