Dell Computer Corporation – Strategy and Challenges for the 21st Century

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DELL COMPUTER CORPORATIION |
Strategy and Challenges for the 21st Century|
|

Table of Contents
INTRODUCTION4
1.1PC and Laptops – Cash Cow6
1.2 Storage Solutions - Cash Cow6
1.3 Servers and Networking - Cash Cows7
1.4 Services - Dogs7
1.5 Peripheral - Dogs...................................................................................................7
2. ANSOFF’S GROWTH MATRIX8
2.1 Market Penetration ...............................................................................................9 2.2 Market Development..........................................................................................10 2.3 Product Development..........................................................................................11 2.4 Diversification.......................................................................................................11

3. ENVIRONMENTAL SCANNING - P E S T12
3.1 Political...............................................................................................................12 3.2Economic.............................................................................................................13 3.3 Social .................................................................................................................14 3.4 Technological ......................................................................................................15 4. PORTER’s FIVE FORCES MODEL........................................................16

4.1 Threat of entry by other competitors16
4.2 Intensity of rivalry among existing competitors17
4.3 Pressure from substitute products18
4.4 Bargaining power of buyers18
4.5 Bargaining power of suppliers18
4.6 Conclusion of the Porter’s Five Forces Analysis19
5. RESOURCE BASED VIEW (Internal Analysis)20
5.1 Resource Value Chain – Tangible Resources20
5.2 Resource Value Chain – Intangible Resources21
5.3 Internal Analysis21
6. PORTER’S GENERIC VALUE CHAIN (Internal Analysis)22
6.1 Primary Activities22
6.1.1 Inbound Logistics: Just-in-Time Inventory22
6.1.2 Operations- Build-to-order Model23
6.1.3 Outbound Logistic- Cost Saving and High Inventory Turn23
6.1.4 Marketing and Sales24
6.1.5 Services24
6.2 Support Activities24
6.2.124
Firm Infrastructure24
6.2.2 Human Resource Management- Diverse workforce, Smart hiring, Tell DELL25
6.2.3 Technology Development25
6.2.4 Procurement25
7. SWOT ANALYSIS26
7.1 Strengths (S)26
7.2 Weaknesses (W)27
7.3 Opportunity (O).....................................................................................................28 7.4 Threats (T)............................................................................................................28

8. COMPETITIVE STRATEGY29
8.1.1 Cost Leadership29
8.1.2 Mass Market Strengths30
8.1.3 Online E Commerce And Direct Sales to Consumers30
8.1.4 Build-To-Order Strategy30
8.1.5 Cash Transaction30
8.2 Recommended Competitive Strategy of DELL31
8.2.1 Continue with Low Price and Direct Sales Strategy31
8.2.2 Set Up New Online Exchange Portal for the Trade-in of second-hand DELL’s Products31
8.2.3Grow the PC Accessories Markets32
8.2.4Grow New Global Markets33
8.2.5Acquisition of Companies33
9. FUNCTIONAL STRATEGIES34
9.1 Production-Operation-Manufacturing Management Strategies34
9.2 Marketing Management Strategies35
9.3 Human Resource Management Strategies35
9.4 Research and Development Strategies36
9.5 Information System Management Strategies37
9.6 Financial-Accounting Management Strategies38
10. BALANCED SCORECARD AND STRATEGY MAP38
10.1 Learning and Growth Perspective40
10.2 Internal Process Perspective40
10.3 Customer Perspective41
10.4 Financial Perspective42
11. CONCLUSION42
Reference Books43
Reference Link43
APPENDIX44

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