Dell computers in the late eighties after a few years of starting up and collecting capital began strategic planning in order to make the company grow and expand in its market. They looked at ways of keeping up with technology, reaching broader groups of consumers, lowering costs, implementing fast service, and developing outside of the pc industry. Dell's vision was to be the most successful computer company in the world at delivering the best customer experience in markets they serve.
Dell recognized that its strength was selling directly to consumers and keeping its costs lower than those of other hardware vendors. Identifying opportunities was an easier task. Dell looked at the marketplace and saw that customers increasingly valued convenience and one-stop shopping and that they knew what they wanted to purchase. Dell also saw the Internet as a powerful marketing tool. On the threats side, Dell realized that competitors like IBM, HP, and Compaq Computer Corp. had stronger brand names, which put Dell in a weaker position with dealers.
Dell put together a business strategy that included mass customization and just-in-time manufacturing (letting customers design their own computers and custom-building systems). This allowed them to keep smaller inventories and costs down at the same time. Dell also stuck with its direct sales plan and offered sales on the Internet. Internet sales were a way of keeping up with technology, and brought convenience to the consumers. The company's Web receives 25 million hits per quarter.
Dell's big strengths are that they design and customize products and services to the requirements of the organizations and individuals purchasing them, and sell an extensive selection of less-expensive hardware and computing software. Nearly two-thirds of Dell's sales are to large corporations, government agencies and educational institutions, not to mention the sale of pc's to homes. Dell's way of differentiating the company from... [continues]
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