Dell 2008

Executive Summary

Dell Inc. is a worldwide supplier of computers and IT products. As a small start-up in 1984 with only one employee (Michael Dell, founder) it grew to become the world’s global market leader in personal computers (PCs) by 2004. However, in 2007, Dell fell to second behind main competitor Hewlett-Packard in worldwide market share.
Dell’s current strategy has shifted since the mid 2000’s to focus on their core competences and key success factors. In the 2000’s, Dell branched out into different IT products, such as TV’s and MP3 players. Although these products had marginal success, Dell has decided to focus on their production of semi-customized computers.
Dell has redefined the value chain by eliminating unnecessary actions while at the same time developing better customer service. Dell has traditionally, and will continue to, succeed by adopting a “Best-Cost strategy”. Dell’s success can also be attributed to its perception of quality, product reliability, and design and innovation, in combination with its highly successful direct sales method.  
Although Dell has been successful in the past, they face some serious threats in the IT industry. The competitive nature of the industry is extremely high, as there are multiple international competitors vying for market share. The speed at which technology changes consistently threatens Dell and requires them to continuously up-grade their products so they do not fall subject to the risks of obsolete technology.
The competitive industry is competitive; however, there are some areas for growth and opportunity that if taken advantage of, can propel Dell back into the worldwide computers producer. The expanding number of internet users is expected to double by 2010. Even without the internet expansion the IT industry has revenues in excess of $1.2 trillion annually.
In order to be successful Dell must adopt and implement three strategies: outsource production of laptops, redesign existing PC... [continues]

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