Kotler and Krller

Topics: Strategic management, Dell, Management Pages: 12 (1903 words) Published: July 12, 2013
Dell Corporation, Strategic Case Analysis prepared by Ijaz Qureshi and John Mufich, Argosy University Business School, San Francisco, California, USA.

Case Analysis: Dell Corporation

By: Ijaz Qureshi & John Muffich

For: Dr. Admassu Bezabah B7405 Business Policy Seminar Summer II: 2004

© Ijaz and John, Argosy Business School, Argosy University, San Francisco, California, USA

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Dell Corporation, Strategic Case Analysis prepared by Ijaz Qureshi and John Mufich, Argosy University Business School, San Francisco, California, USA.

Executive Summary:
Dell computer was founded by Michael Dell at age of twenty one in his dorm at the University of Texas, Austin. Dell’s strategy is to build computer so that it can be order by the consumers. It’s build to order strategy has made Dell the most successful company in the information technology field. Dell sells its machines and other equipments directly to customers so it has eliminated the middleman. Dell has high margin because of direct sale strategy and customers get excellent state of the art machines at low cost compare to Dell’s competitors. Michael Dell’s visionary leadership has made Dell the second most successful PC maker in the industry. (IBM is the leader). Dell’s ability to adapt to changing circumstances is its great strength. One week after the September 11th 2001 attack, Dell reported selling 24,000 servers and desktops. Dell established mobile technology park in Washington D.C. and New York by converting three eighteen wheel trucks and operated its factories round the clock to fulfill the unexpected customers demand. The trustworthy relationship between Dell’s management and work force made it possible to change the disastrous moment in the I.T industry to a great opportunity for the organization. Dell has very user friendly web site and half of Dell’s sale, half of tech support and three quarter of order status takes place online. The supply chain and data integration with suppliers has made Dell one of the most efficient computer manufacturers. The continuous advancement in technology and innovative approach to manufacturing and assembly keeps Dell the low price leader in the PC industry. Dell’s has highest Return on Assets (11.10%), highest inventory turnover (65.7) and highest Return on Invested Capital (24.40%) in the PC market.

© Ijaz and John, Argosy Business School, Argosy University, San Francisco, California, USA

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Dell Corporation, Strategic Case Analysis prepared by Ijaz Qureshi and John Mufich, Argosy University Business School, San Francisco, California, USA.

SWOT, External, Competitive and Internal Matrix Analysis of Dell Corporation; In this part of this research paper we would analyze the Dell Corp by utilizing the strategic management matrix tools. For example, we would explore the SWOT Analysis, External Factor Matrix Analysis, Competitive Profile Matrix Analysis and finally the Internal Factor Matrix Analysis to analyze the strategic position of Dell Corporation in the industry. Our objective here is to utilize the strategic management tools mentioned in the course books and in the research material reviewed during the class secession to come up with valuable conclusion that would add value to Dell Corporation. However before we proceed to strategic analysis, we would critically view the core issues of Dell Corp. This step would help us to better understand the development and implementation of strategies in this organization.

The Core Issues at Dell Corp:
1. The Price War is going on between PC Makers. 2. Revenues Down in 2002 compare to 2001 (31.9 to 31.1 billion) 3. Worldwide sales of PC’s Down 11% in 2001, Dell’s Sales Up 4. Leadership at Dell Corporation 5. Service Contracts 6. Maintaining the Market Share

© Ijaz and John, Argosy Business School, Argosy University, San Francisco, California, USA

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