What are the elements of Dell’s strategy? Which one of the five generic competitive strategies is Dell employing? How well do the different pieces of Dell’s strategy fit together? In what way is Dell’s strategy evolving?
As we know strategy can be define in many ways. Based on the former CEO of General Electric, He said that strategy means making clear-out choices about how to complete. So what are the elements of Dell’s strategy to be the worldwide leader in personal computer? Dell has few elements of strategy to achieve his goal. One of the elements is to be cost-efficient build-to-order manufacturing. Dell built the vast majority of its computers, workstation and servers to order with only small fraction was produced for inventory and shipped to wholesale or retail, by doing this Dell can reduce the unnecessary time and cost. The second element is partnering with suppliers, by doing this Michael Dell do believe that it made much better sense for the company to partner with supplier of PC parts and components than to integrate backwards and get into parts and components manufacturing on its own. The third element is by using direct sales techniques to gain customers. This element of strategy is to gain and be closed to the potential customers. The forth elements is by expanding into additional products and services to capture a bigger share of customers’ IT spending. The fifth element is to provide good customer service and technical support for their customers. This is a good element to potential buyers and to keep current customer stick with their company or services. The sixth element is to keep R&D and engineering activities focused squarely on better meeting the needs of customers and the last element is using standardized technologies in all product offering.
Michael Dell also employed one of the generic competitive strategies to compete with other companies particularly Hewlett-Packard (HP). From the case study, I can...