Dell Strategic Analysis

Dell is a key competitor in the computer hardware industry.   Dell provides its products to the general public, governments, businesses, and educational institutions.   Dell operates primarily on two business segments – computers and servers.   Dell’s business-level strategy is composed of a focused differentiation approach.   In turn, the corporate-level strategy Dell uses is a global approach. Dell' s mission is to be the most successful computer company in the world at delivering the best customer experience in markets they serve. In doing so, Dell aims to meet customer expectations of highest quality, leading technology, competitive pricing, best- in-class service and support, flexible customization capability and financial stability. Dell serves four main customer segments; Home Users, Large Enterprise, Small and Medium Businesses and Public Sector.

An External Analysis:

Due to the rapid technological innovations in computer electronics and the high level of dependency of many businesses and home users, there are no direct substitute products for Dell’s product portfolio. While there are no threats from substitute products, there is increasing competition from new entrants in the Home Users market segment.

General External Environment:

Dell’s global presence creates opportunities for expansion in the overseas markets. Its awareness about the environment makes it a responsible investor. In emerging markets, Dell’s strategy is to focus on providing region-specific products to meet the needs of emerging markets such as China, Brazil, Russia, and India. Customers in these markets need a low cost PC that provides the basic functionality.

Furthermore, its user friendly web site makes it easy for those who are not computer expert to go online and do the shopping in a very safe environment. Dell’s ability to adapt to changing circumstances is its great strength. The internet is a great opportunity for companies to get their name into the public domain...